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Question
Which of the following is the main purpose of a trade barrier in global trade? Choose the correct option.
Options
To promote the growth of foreign companies in a country
To control the production of domestic industries
To regulate foreign trade into the country
To stop foreign trade between countries
MCQ
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Solution
To regulate foreign trade into the country
Explanation:
A trade barrier enables a government to control the flow of imports by deciding which types of goods and how much of them should enter the country. Its principal purpose is to defend home industries from international competition while properly managing the national economy.
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