trade barriers such as tariffs, quotas, and embargoes are sometimes set up by countries to restrict trade because they want to produce their own good and sell them in their own country.
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True. Trade barriers such as tariffs, quotas, and embargoes are often implemented by countries to protect domestic industries and promote the production and sale of goods within their own country. These barriers restrict imports and make it more expensive for foreign goods to enter the domestic market, thereby giving local industries a competitive advantage.
The correct answer is true.
Trade barriers such as tariffs, quotas, and embargoes are indeed sometimes set up by countries to restrict trade. These measures are often implemented to protect domestic industries and promote local production and consumption. By imposing tariffs, which are taxes on imported goods, countries can increase the price of foreign products, making them less competitive compared to domestic goods.
Quotas, on the other hand, limit the quantity or volume of certain goods that can be imported into a country. This restriction helps ensure that domestic industries have a larger market share and are not overwhelmed by foreign competition.
Embargoes refer to a complete ban on trade with a specific country or set of countries. They are usually implemented for political reasons, such as retaliatory actions or to apply economic pressure on a country due to disputes or conflicts.
While trade barriers may protect domestic industries, they can also have negative consequences. They can lead to higher prices for consumers, limited choices, reduced competition, and potential trade disputes between countries. Therefore, countries often engage in negotiations and discussions to reach trade agreements that balance their respective interests.