Active Bicycle Company has just received notice that a shipment of 300 bicycles has been rejected by the customs administration of the recipient country because the bikes did not include a metal plate surrounding the chain. What category of nontariff barriers primarily uses such quality issues as a trade barrier?
A) quotas
B) licenses
C) embargoes
D) boycotts
E) standards

Question

Quizplus · Accepted Answer

Standards are a category of nontariff barriers that focus on the specific technical requirements or quality issues of products. In this case, the requirement for a metal plate surrounding the chain on bicycles is an example of a standard that must be met for the product to be accepted in the recipient country.

Active Bicycle Company Has Just Received Notice That a Shipment