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Class 10 › Economics › Globalisation and the Indian Economy
CBSE2026Class Class 10 · Economics1 Marks · Mcq✅ Verified
Which of the following is the main purpose of a trade barrier in global trade ? Choose the correct option.
A. To promote the growth of foreign companies in a country
B. To control the production of domestic industries
C. To regulate foreign trade into the country
D. To stop foreign trade between countries
✅ Answer & Solution
✅ Correct Answer: C
Step 1 - Definition : Tax on imports is an example of a trade barrier. It is called a barrier because some restriction has been set up.
Step 2 - Purpose : Governments use trade barriers to increase or decrease (REGULATE) foreign trade and to decide what kinds of goods and how much of each should come into the country.
Step 3 - Eliminate others : the aim is to protect, not harm, domestic industries; it does not promote foreign companies; and it restricts rather than completely stops foreign trade.
Answer: (C) To regulate foreign trade into the country
