Trade barriers create costs that are paid by the government erecting the barrier.

Question

Quizplus · Accepted Answer

Trade barriers create costs that are ultimately paid by consumers and producers in the form of higher prices, reduced choices, and lost economic opportunities. The government may try to protect domestic industries by erecting barriers such as tariffs, quotas, and regulations, but these policies tend to distort markets and impede competition, resulting in economic inefficiencies and welfare losses. Therefore, trade barriers impose a burden on society as a whole rather than just the government.

Trade Barriers Create Costs That Are Paid by the Government