Match each type of barrier to trade to its effect.
blocks all trade with another country
taxes certain classes of imported or exported goods
limits the volume of goods imported from a foreign country
tariff
quota
embargo
embargo - blocks all trade with another country
tariff - taxes certain classes of imported or exported goods
quota - limits the volume of goods imported from a foreign country
Tariff: Taxes certain classes of imported or exported goods
Quota: Limits the volume of goods imported from a foreign country
Embargo: Blocks all trade with another country
To match each type of barrier to trade to its effect, we need to understand the definitions and functions of each term.
1. Tariff: A tariff is a tax imposed on imported or exported goods. It is levied by the government on specific classes of goods, regardless of the country of origin or destination.
Effect: Taxes certain classes of imported or exported goods.
2. Quota: A quota is a restriction on the volume or quantity of goods that can be imported from a foreign country. It sets a limit on the maximum amount of goods allowed to enter the domestic market.
Effect: Limits the volume of goods imported from a foreign country.
3. Embargo: An embargo is a complete ban on trade or economic transactions with another country. It prohibits any form of import or export activities with the targeted nation.
Effect: Blocks all trade with another country.
Therefore, matching the types of barriers to trade with their effects, we have:
- Tariff: Taxes certain classes of imported or exported goods.
- Quota: Limits the volume of goods imported from a foreign country.
- Embargo: Blocks all trade with another country.