The Chinese protected its automobile industry through restrictive
Tariffs and quotas.Which of the following BEST describes this
Practice?

Question

Quizplus · Accepted Answer

The practice described in the question is infant industry protection, which involves using trade barriers, such as tariffs and quotas, to protect a growing industry in its early stages from foreign competition until it becomes competitive enough to survive on its own. This is exactly what China did with its automobile industry, which was relatively underdeveloped compared to other countries' automobile industries. Antidumping duties are trade barriers used to prevent foreign companies from selling goods at unfairly low prices that would harm domestic companies. Voluntary export restraints involve a foreign government voluntarily limiting its exports to a particular country to avoid the imposition of trade barriers by the importing country. Price discrimination refers to the practice of charging different prices for the same goods or services to different customers based on various factors, such as location, age, or income level.

The Chinese Protected Its Automobile Industry Through Restrictive