Question

The Netherlands exported tulip bulbs to almost every country in the world except Japan. This was because in Japan, customs inspectors insisted on checking every tulip bulb by cutting it vertically down the middle. This is an example of which of the following trade barriers?
A) Export restraint
B) Administrative trade policies
C) Local content requirement
D) Ad valorem

Answer 1

Answer:

Option B, Administrative trade policies, is the right answer.

Explanation:

The bureaucratic rules or laws that are intentionally designed to regulate the flow of a special import into a nation or country are called the administrative trade policies. Such a policy is implemented by the government to boost exports and restrict imports. It is done by reducing the indirect tax to a level where the production cost and product price is reduced.