Chapter 18, Problem 16AA

To determine

To explain the ways how a country can restrict imports.

Explanation of Solution

Trade Restriction	Working
Tariff	It is a tax which is levied on imported goods from abroad. In order to curtail imports government of a country imposes heavy tariff duties to make goods expensive which lowers down the import bill.
Quota	It refers to a legal limit on the quantum of goods that can be imported. By putting quotas government creates artificial scarcity of the product which increases price and domestic producers get an incentive to produce more.
Standards	These are the defined laws that a country uses by establishing safety and health standards for imported goods to discourage imports.