TRADE _______________ are designed to protect producers in the country from being out-competed by foreign producers & to prevent trade deficits from happening.
barriers
deficits
The correct word to fill in the blank is "barriers."
Trade barriers are designed to protect producers in the country from being out-competed by foreign producers and to prevent trade deficits from happening.
Step 1: Understanding trade barriers:
- Trade barriers refer to the government-imposed restrictions and regulations that limit or control the flow of goods and services between countries.
- These barriers can take various forms, such as tariffs (taxes on imported goods), quotas (limits on the quantity of imported goods), subsidies (financial aid given to domestic producers), and regulations (technical standards or safety requirements).
Step 2: Objectives of trade barriers:
- To protect domestic industries: By imposing trade barriers, the government aims to shield domestic producers from foreign competition.
- To prevent job losses: Protecting domestic industries helps to maintain employment opportunities within the country.
- To safeguard national security: Trade barriers can also be implemented to protect industries deemed critical to national security.
- To protect infant industries: Trade barriers can provide a temporary shield for emerging industries until they become competitive enough to compete internationally.
- To reduce trade deficits: Trade deficits occur when a country imports more goods and services than it exports. Trade barriers can limit imports and help reduce trade deficits.
In summary, trade barriers are implemented to protect domestic industries, prevent job losses, safeguard national security, support infant industries, and reduce trade deficits.
The term you are looking for is "trade barriers." Trade barriers are policies or measures implemented by a country to restrict imports and protect their domestic industries from competition with foreign producers. These barriers can take various forms, including tariffs (taxes on imported goods), quotas (limits on the quantity of imported goods), and subsidies or financial incentives for domestic producers.
To prevent trade deficits, which refers to an excess of imports over exports, countries may also use trade barriers as a means to reduce the importation of goods and encourage domestic production. By imposing barriers, the idea is that domestic producers will face less competition from foreign producers, allowing them to sell their products at higher prices and attain higher profits. This approach is often criticized as it can lead to higher prices for consumers and limit the availability of foreign goods in the domestic market.