What are examples of trade restrictions employed by countries?

Trade restrictions are measures imposed by governments to control the amount of trade across their borders, often to protect domestic industries and regulate foreign competition. The correct answer, which includes taxes and tariffs, represents significant tools that countries typically use to manage international trade.

Taxes, commonly referred to as tariffs when applied to imported goods, raise the cost of these goods for consumers buying them within a country. This can help to protect domestic producers by making local products more competitively priced against foreign imports. Tariffs can also serve as a source of revenue for the government.

Additionally, tariffs can act as a barrier to entry for foreign companies, potentially allowing domestic companies to maintain a stronger market position. This is essential for countries aiming to support their local economies and jobs.

While the other answer choices do contain forms of economic regulation and intervention, they do not specifically encompass the traditional concept of trade restrictions as effectively as taxes and tariffs do. Quotas and permits address quantity limitations rather than price, subsidies support domestic industries by providing them with financial aid, and negotiated agreements relate more to diplomacy and trade relations than to restrictions. Thus, taxes and tariffs distinctly fit the definition of trade restrictions used by countries.