Question : Which of the following is not a type of trade barrier?
Option 1: Quotas
Option 2: Subsidies
Option 3: Embargoes
Option 4: Spot rates
Correct Answer: Spot rates
Solution :
The correct answer is (d) Spot rates.
Spot rates are not a type of trade barrier. Spot rates refer to the exchange rates at which currencies can be exchanged for immediate delivery or settlement. They are used in foreign exchange markets for currency transactions.
The other options listed are all types of trade barriers:
a) Quotas: Quotas are restrictions on the quantity of goods that can be imported or exported within a specified period. They limit the amount of trade that can take place.
b) Subsidies: Subsidies are financial assistance provided by governments to domestic industries or producers, which can give them a competitive advantage over foreign competitors.
c) Embargoes: Embargoes are complete bans or restrictions on trade with a specific country or countries. They are often imposed for political, economic, or security reasons.
