Trade Protection Measures and Import Restrictions

Steps:

• Identify protection as barriers limiting imports to shield domestic industries.
• Recall quotas cap import quantities; tariffs tax imports; subsidies aid locals; exchange rates affect relative prices.
• Assess each option: higher quota allows more imports, reducing barriers.
• Compare: subsidies, tariffs, and lower exchange rates all hinder imports, increasing protection.

Why A is correct:

• A quota limits import volume; raising it permits more foreign cars, directly weakening import restrictions per trade policy definitions.

Why the others are wrong:

• B: Subsidies lower domestic costs, making local cars more competitive against imports.
• C: Tariffs raise import prices, deterring foreign cars via added tax.
• D: A lower exchange rate depreciates currency, increasing import costs in domestic terms.

Final answer: A