Which of the following is an example of nontariff trade barrier?
A) Gayle Inc. is a U.S.-based retailer that imports cosmetic products manufactured in Thailand. These products pass through U.S. customs and are subject to a 5 percent import duty.
B) The U.S. imports chocolates manufactured in Belgium that cost 65 a box with taxes.
C) The U.S. Department of Commerce announced that white sugar imports will be limited to 7,500 million tons.
D) Spices imported from India to the U.S. for sale in the domestic market are subject to a 10 percent import duty.
Question 2
Which of the following is true with regard to protectionism?
A) It increases the availability of raw materials for domestic industries.
B) It decreases the cost of products sold in the home market.
C) It increases the availability of products sold in the home market.
D) It can trigger retaliation from foreign governments, which reduces sales prospects for exports.
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