Norvada 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 Norvada?
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 to their products before they could be exported to Norvada.
D)Participation in the Uruguay Round of GATT negotiations.

Question

Quizplus · Accepted Answer

Restrictive quality standards are an example of a non-tariff barrier because they create a technical obstacle to trade that foreign firms must overcome in order to access the Norvada market. This barrier does not involve a tax or participation in trade negotiations like the Uruguay Round of GATT.

Norvada Is a Small Nation That Has Followed Protectionist Policies