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4 votes
A form of protection which is often used by countries to protect the necessities. Voluntary export restraints Time consuming formalities Exchange controls Tariffs on imports

asked
User Gkalpak
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1 Answer

3 votes

Final answer:

Countries protect their domestic industries using protectionist measures like tariffs, non-tariff barriers, and exchange controls. Tariffs directly increase the cost of imported goods while non-tariff barriers create procedural hurdles. The WTO works toward reducing trade barriers.

Step-by-step explanation:

When countries employ a form of protection to shield their domestic industries and protect the necessities, they often use a variety of measures including tariffs, non-tariff barriers, import quotas, and exchange controls. Tariffs on imports are straightforward taxes on imported goods, making them more expensive and less attractive to consumers compared to domestic products. In contrast, non-tariff barriers might involve creating complex rules, regulations, and procedures that imports must adhere to, thereby making it more difficult or expensive to import those goods. Protectionism as a government policy aims at reducing or blocking imports to protect local industries from foreign competition. The World Trade Organization (WTO) stands as an international body working to reduce these barriers and resolve trade disputes between countries.

answered
User Bobby Stenly
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8.3k points
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