When a government creates obstacles to trade, this is referred to as:
A) barriers to entry.
B) trade shortening.
C) entry bending.
D) barricading.

Question

Quizplus · Accepted Answer

Barriers to entry refer to any obstacles that make it difficult for new competitors to enter a market. Government-created obstacles to trade, such as tariffs or quotas, can make it more difficult for foreign companies to enter a domestic market, therefore creating barriers to entry. Choices B, C, and D are not commonly used terms in international trade.

When a Government Creates Obstacles to Trade, This Is Referred