Question

4. Name and explain two types of trade barriers which are used by governments to protect the domestic
industry from foreign competition.​

Answer 1

1) Taxes: Huge amounts of tariff and taxes are levied on foreign companies wanting to set up factories. This reduces profits for the companies as a result of which they become hesitant to do the same.

2) Promotion on local trade: Local trade/handicrafts, etc are promoted by the government under various schemes.