The correct Answer is A-3, B-1, C-2, D-4
Explanation
Trade measures are government policies that influence international trade flows. These measures can be broadly categorized into tariff barriers and non-tariff barriers, each with distinct mechanisms and objectives.
Statement-wise Analysis
- A. Tariff:
- Correct. A tariff is a tax imposed on imported goods and services. It increases the price of imported goods, making them less competitive compared to domestically produced goods. This aligns with description 3: "Tax imposed on imported goods".
- B. Quota:
- Correct. A quota is a quantitative restriction on the amount of a good that can be imported or exported during a specific period. It sets a numerical limit on the quantity of imports. This aligns with description 1: "Numerical limit on quantity of imports".
- C. Non-tariff barrier:
- Correct. Non-tariff barriers are trade restrictions that do not involve a direct tax or duty. They include various measures such as import quotas, import licensing, customs delays, technical barriers to trade (e.g., quality standards, health and safety regulations), and sanitary and phytosanitary measures. Restrictions based on quality standards are a common form of non-tariff barrier. This aligns with description 2: "Restrictions based on quality standards".
- D. Subsidy:
- Correct. A subsidy is a form of financial aid or support extended to an economic sector (or institution, a business, or an individual) with the aim of promoting economic and social policy. In the context of trade, subsidies to domestic producers can make their goods cheaper and more competitive, both domestically and internationally. This aligns with description 4: "Financial support to domestic producers".
Key Takeaway
Tariffs are taxes on imports, quotas are numerical limits on imports, non-tariff barriers encompass various non-tax restrictions like quality standards, and subsidies are financial support to domestic producers.