Reducing Trade Barriers Promotes Free Trade

Steps:

• Identify the goal: Increase free trade by lowering restrictions on imports and exports.
• Define free trade: Minimal government interference, allowing goods to flow freely across borders.
• Evaluate each option: Check if it reduces or increases barriers like quotas, subsidies, embargoes, or tariffs.
• Select the option that eases import limits to facilitate more trade.

Why A is correct:

• A higher quota raises the import limit on cars, reducing restrictions and allowing more foreign goods to enter, aligning with free trade principles of fewer quantitative barriers.

Why the others are wrong:

• B: Subsidizing foreign producers distorts markets by favoring specific exporters, not broadly promoting free trade.
• C: An embargo completely bans imports, severely restricting trade and opposing free trade goals.
• D: Higher tariffs increase taxes on imports, raising costs and discouraging trade, which hinders free trade.

Final answer: A