What is a common non-tariff barrier that countries may use?

Prepare for the FBLA International/Global Business Exam! Study with flashcards and multiple choice questions, each with hints and explanations. Get set for success!

Non-tariff barriers (NTBs) are regulations and policies other than tariffs that countries use to control the amount of trade across their borders. Product standards and regulations are a prevalent form of these barriers. They include requirements that goods must meet to be imported, such as safety standards, quality checks, and environmental regulations. By establishing these standards, a country can protect consumers and the environment, incentivize domestic production, and control the quality of products entering its market.

While other choices like import duties, export subsidies, and quotas are important aspects of trade policy, they fall into different categories. Import duties are a direct form of tariff, export subsidies are financial aid to domestic firms to enhance competitiveness abroad, and quotas specifically limit the quantity of goods that can be imported or exported. Each of these serves different purposes, but product standards and regulations uniquely exemplify non-tariff barriers since they govern the conditions under which products can enter a market rather than directly affecting pricing or availability.

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