Which protectionist measure is described as administrative controls or red tape?

Prepare for the CIMA Managing Performance (E2) Exam. Practice with flashcards and multiple-choice questions, each with explanations. Get ready for your exam!

Multiple Choice

Which protectionist measure is described as administrative controls or red tape?

Explanation:
Administrative controls and red tape describe regulatory barriers that slow or block trade by imposing procedural requirements on importers. This includes things like import licenses, lengthy clearance procedures, conformity assessments, and other bureaucratic hurdles. Such measures raise the cost and time of bringing goods into a country, reducing imports without setting a tariff or a quota. This is why the described protectionist measure fits best: it relies on administrative procedures rather than price or quantity controls. Tariffs impose a tax on imports, quotas limit how many can enter, and a withholding tax is a general tax rather than a trade-specific barrier, so they aren’t characterized primarily as administrative controls or red tape.

Administrative controls and red tape describe regulatory barriers that slow or block trade by imposing procedural requirements on importers. This includes things like import licenses, lengthy clearance procedures, conformity assessments, and other bureaucratic hurdles. Such measures raise the cost and time of bringing goods into a country, reducing imports without setting a tariff or a quota.

This is why the described protectionist measure fits best: it relies on administrative procedures rather than price or quantity controls. Tariffs impose a tax on imports, quotas limit how many can enter, and a withholding tax is a general tax rather than a trade-specific barrier, so they aren’t characterized primarily as administrative controls or red tape.

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