Mortavia is a small nation that has followed protectionist policies for many years.Which of the following would be an example of a nontariff barrier established by Mortavia?
A)Establishment of a tax levied on imported goods so that foreign products are more expensive than competing domestic goods.
B)Establishment of a tax levied on imported goods designed primarily to raise money for the government.
C)Establishment of restrictive quality standards requiring foreign firms to make expensive modifications in their products before they can be sold in Mortavia.
D)Participation in the Uruguay Round of GATT negotiations.

Question

Quizplus · Accepted Answer

The establishment of restrictive quality standards that require foreign firms to make expensive modifications in their products before they can be sold in Mortavia is an example of a nontariff barrier. This type of requirement makes it more difficult and costly for foreign firms to export their products to Mortavia, thereby protecting domestic industries.

Mortavia Is a Small Nation That Has Followed Protectionist Policies