Question

Which of the following are instruments of trade policies?
(A) Tariffs
(B) Quotas
(C) Sales taxes
(D) Anti-dumping duties
Choose the correct answer from the options given below:

• A. (A), (B) and (D) only
• B. (A), (B) and (C) only
• C. (A), (B), (C) and (D)
• D. (B), (C) and (D) only

Hint:

Tariffs, quotas, and anti-dumping duties are primary instruments used in trade policy to control imports and protect local industries.

Answer 1

The Correct Option is A

Instruments of trade policies are tools used by governments to influence trade.
These include: 
(A) Tariffs, which are taxes on imports. 
(B) Quotas, which limit the quantity of goods that can be imported. 
(D) Anti-dumping duties, which are imposed on foreign imports that are priced below their market value. 
Sales taxes are not typically used directly in trade policy. 
Thus, the correct answer is (a).