Trade barriers – Flashcards
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What term describes a ban or restriction on trade with another country?
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embargo
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Tariffs and subsidies are both types of
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incentives
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How do quotas help domestic producers?
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Quotas facilitate the sale of more domestic goods
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Which type of incentive makes it more profitable to follow a certain course of action?
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positive
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How do embargos most negatively affect a domestic market
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by depriving domestic producers of needed goods, restricting their ability to trade
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Which of these is a positive incentive for domestic producers?
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A subsidy on domestic oranges
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On which country has the United States imposed an embargo since 1960?
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Cuba
