Social Science (087) — AI-generated practice question

A trade barrier is a restriction on foreign trade, such as a tax on imports. It is called a barrier because it limits the free flow of goods between countries. For example, a tax on imported toys raises their price, making them less competitive and reducing imports.

After Independence, the Indian government used trade barriers to protect domestic producers from foreign competition. Industries were just developing in the 1950s and 1960s, and competition from cheaper imports would have prevented these industries from growing. Therefore, India allowed imports of only essential goods like machinery, fertilisers, and petroleum.

Source: Liberalisation of foreign trade and foreign investment policy, Chapter 4

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• 1 mark for defining trade barrier (with example).
• 2 marks for explaining the reason (protect new/infant industries from foreign competition + specific context of 1950s–60s).
• Always mention the specific examples from the text (machinery, fertilisers, petroleum) — it shows you've read the chapter.
• Avoid writing a long essay; the examiner looks for these key points, stated clearly and concisely.