Asked by Manisha Reddy on May 23, 2024
Verified
Which of the following is not a type of trade restriction?
A) Low-interest loans to foreign buyers
B) Export subsidies to domestic producers
C) Restrictive health and safety standards
D) Domestic content requirements
E) Economies of scale
Economies of Scale
Cost advantages achieved when increasing production leads to lower fixed costs per unit.
Restrictive Health
Policies or practices designed to restrict or control the availability of medical treatments, procedures, or resources, often for regulatory or budgetary reasons.
Export Subsidies
financial support from governments to domestic companies for the purpose of promoting goods for export, aimed at increasing competitive advantage on the global stage.
- Identify different types of trade restrictions and their implications.
Verified Answer
KR
karishma ranjanMay 23, 2024
Final Answer :
E
Explanation :
Economies of scale refers to a competitive advantage gained by increased production efficiency and cost savings, and is not a type of trade restriction which limits free trade between countries.
Learning Objectives
- Identify different types of trade restrictions and their implications.