Governments often impose trade barriers to restrict imports of products or services seen to threaten national assets.
Indicate whether the statement is true or false
Question 2
Governments impose export controls for the purpose of ________.
A) improving available opportunities for domestic sales
B) boosting derived demand in the domestic market
C) preventing the export of certain products to certain countries
D) boosting derived demand in foreign markets
Question 3
Which of the following is an example of an offensive rationale for government intervention?
A) The government of Erbia imposes trade restrictions on the export of plutonium to certain countries.
B) The government of Berylia imposes a trade barrier to curtail the import of low-priced products from manufacturers in the developed economies.
C) The government of Argonia imposes investment barriers to safeguard special interest groups.
D) The government of Rhodia requires foreign companies to enter its huge markets through joint ventures with local firms.
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