A newly formed country in the Caribbean has no high tariffs, yet other countries find it difficult to trade with the new country because of its requirements for labeling, product testing, and certifications. These restrictions can best be classified as
A) embargos.
B) currency devaluations.
C) import quotas.
D) quality import restrictions.
E) bureaucratic red tape.

Question

Quizplus · Accepted Answer

The given scenario describes bureaucratic red tape, which refers to the excessive regulations and procedures that create obstacles in international trade. The requirements for labeling, product testing, and certifications make it difficult for other countries to trade with the newly formed country, despite the absence of high tariffs.

A Newly Formed Country in the Caribbean Has No High