Question

Which of the following is the main purpose of a trade barrier in global trade? Choose the correct option.

• A. To promote the growth of foreign companies in a country
• B. To control the production of domestic industries
• C. To regulate foreign trade into the country
• D. To stop foreign trade between countries

Hint:

Common examples of trade barriers include {tariffs (tax on imports)}, {quotas}, and {import restrictions}, which are used to regulate international trade.

Answer 1

The Correct Option is C

Concept: A trade barrier is a government-imposed restriction on international trade. Governments use trade barriers such as tariffs, quotas, and regulations to control the flow of goods and services between countries.
Step 1: Understand the meaning of trade barriers.
Trade barriers are measures taken by governments to regulate imports and exports. They help protect domestic industries from excessive foreign competition.
Step 2: Analyze the given options.

• Promoting foreign companies is not the aim of trade barriers.
• Controlling domestic production is not their main purpose.
• Regulating foreign trade entering the country is the main objective.
• Trade barriers do not completely stop foreign trade.

Step 3: Identify the correct option.
Therefore, the main purpose of trade barriers is: \[ To regulate foreign trade into the country \] Hence, the correct answer is Option (C).