Trade Barriers Limit Global Exchange

Steps:

• Identify factors affecting international trade volume: free flows increase it, barriers decrease it.
• Evaluate each option for promoting or restricting cross-border goods/services movement.
• Recognize quotas as import limits that directly curb trade quantities.
• Confirm non-trade actions like loans or aid do not restrict physical exchanges.

Why C is correct:

• Quotas are quantitative trade restrictions under WTO rules, limiting import volumes and reducing overall international trade flow.

Why the others are wrong:

• A: Bank loans facilitate capital flows, potentially enabling more trade without restricting it.
• B: Factory establishment is foreign direct investment, boosting production and local trade integration.
• D: Government aid supports recipient economies, often increasing imports and trade opportunities.

Final answer: C