Question

Why do countries provide financial incentives? Financial incentives act as trade barriers. Financial incentives limit imports. Financial incentives set standards. Financial incentives restrict all trade.

Answer 1

Why do countries provide financial incentives?

The correct answer is letter A: Financial incentives act as trade barriers.

When countries provide financial incentives, they are promoting their domestic production by making it more efficient and cheaper, moreover, it is a way of protecting the country's industry.

Besides, financial incentives play a crucial role in acting as trade barriers, because it is a way of limiting foreign investment.

Answer 2

A. Financial incentives act as trade barriers