Identify at least five ways governments intervene in international trade
Indicate whether the statement is true or false.
Answer: Taxes, surcharges, or duties levied against imported goods are known as tariffs. Tariffs can be levied to generate revenue, to restrict trade, or to punish other countries for disobeying international trade laws. Import quotas limit the amount of particular goods that countries allow to be imported during a given year. An embargo is a complete ban on the import or export of certain products or even all trade between certain countries. Export subsidies are a form of financial assistance in which producers receive enough money from the government to allow them to lower their prices in order to compete more effectively in the world market. Antidumping measures the practice of selling large quantities of a product at a price lower than the cost of production or below what the company would charge in its home market is called dumping. Sanctions are politically motivated embargoes that revoke a country's normal trade relations status; they are often used as forceful alternatives short of war. Sanctions can include arms embargoes, foreign-assistance reductions and cutoffs, trade limitations, tariff increases, import-quota decreases, visa denials, air-link cancellations, and more.
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Fill in the blank(s) with the appropriate word(s).
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