What are the two main forms of protection used to shield domestic industries from foreign competition in an inward- looking trade strategy?

Correct option is D

The correct answer is (d) Tariffs and quotas.
· In an inward-looking trade strategy, governments use tariffs and quotas as the two main forms of protection to shield domestic industries from foreign competition:
· Tariffs: Taxes imposed on imported goods, making them more expensive and less competitive compared to domestically produced goods.
· Quotas: Limits on the quantity of a specific good that can be imported, restricting foreign competition and encouraging domestic production.
Information Booster:
· Subsidies: While subsidies are a form of government financial support for domestic industries, they are not as directly linked to trade barriers as tariffs and quotas.
· Price controls: These are regulatory measures and not commonly used in trade protection.