Which of the following best defines a trade policy?
A)It is a government policy directed toward the goal of improving the tradeoff between equity and efficiency.
B)It is a government policy that directly influences the quantity of goods and services that a country imports or exports.
C)It is a government policy directed toward the goal of increasing domestic trade.
D)It is a government policy toward trade unions.

Question

Quizplus · Accepted Answer

Trade policy is a government's policy that affects the flow of goods and services across borders. It can be designed to encourage exports, restrict imports, regulate trade practices, establish tariffs, and negotiate trade agreements. Therefore, option B, which states that a trade policy directly influences the quantity of goods and services that a country imports or exports, is the correct definition of trade policy among the options provided. The other options, including option A, which relates to government policy on equity and efficiency, option C, which talks about increasing domestic trade, and option D, referring to trade unions, do not accurately define trade policy.

Which of the Following Best Defines a Trade Policy