Question

Which of the following are instruments of trade policies?
(A) Tariffs
(B) Quotas
(C) Sales taxes
(D) Anti-dumping duties
Choose the correct answer from the options given below:

• A. (A), (B) and (D) only
• B. (A), (B) and (C) only
• C. (A), (B), (C) and (D)
• D. (B), (C) and (D) only

Hint:

Tariffs, quotas, and anti-dumping duties are primary instruments used in trade policy to control imports and protect local industries.

Answer 1

The Correct Option is A

Governments utilize trade policy instruments to influence commerce.
These include:
(A) Tariffs: taxes on imported goods. 
(B) Quotas: restrictions on the quantity of imports. 
(D) Anti-dumping duties: charges on foreign imports priced below market value. 
Sales taxes are not direct trade policy tools. 
Therefore, the correct option is (a).