Which of the following policy decisions by the central government could potentially serve as a trade barrier?
CBSE Sample Paper 2023-24
NCERT Class 10 Social Science
Description:
In India, policies are formulated by:
– Central Government: Through ministries, departments, and Parliament.
– State Governments: Within their respective states.
– Local Bodies: Such as municipal corporations and panchayats.
Policies are shaped through collaborative efforts among these entities at different levels of governance.
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The policy decision by the central government that could act as a trade barrier is:
(c) implementing higher tariffs on imports.
Explanation:
Increasing tariffs on imports is a policy that can create a trade barrier by making foreign goods more expensive in the domestic market. This move aims to protect domestic industries by discouraging imports. However, it can hinder free trade, as higher tariffs may reduce the competitiveness of foreign products, potentially limiting consumer choices and impacting international trade relations.