Which statement best defines a trade policy?
A) It is a government policy directed toward the goal of improving the trade-off between equity and efficiency.
B) It is a government policy that directly influences the quantity of goods and services that a country imports or exports.
C) It is a government policy directed toward the goal of increasing domestic trade.
D) It is a government policy designed to limit the power of trade unions.

Question

Quizplus · Accepted Answer

Trade policy refers to the government's approach to managing foreign trade. The primary goal of trade policy is to influence the quantity and composition of goods and services that a country imports or exports. This can be accomplished through a variety of measures, such as tariffs, quotas, subsidies, and trade agreements. The other choices do not accurately define trade policy.

Which Statement Best Defines a Trade Policy