Q1. [1] § WHAT IS GLOBALISATION? § Liberalisation of foreign trade and foreign investment policy § WORLD TRADE ORGANISATION
⚠ Globalisation and the Indian Economy › WORLD TRADE ORGANISATION — Internal project only — not in the Board exam (per CBSE 2026-27 curriculum)
Only 'What is Globalisation?' and 'Factors that have enabled Globalisation' are in the Board exam; the remaining sub-topics are the internally-assessed interdisciplinary project. [source: Course Structure — Economics, Chapter 4 (Subtopics evaluated in Board)]Which of the following is the main purpose of a trade barrier in global trade ? Choose the correct option.
- A To promote the growth of foreign companies in a country
- B To control the production of domestic industries
- C To regulate foreign trade into the country
- D To stop foreign trade between countries
Previously asked in CBSE board exam
2026 32/5/1 Q32
Generated by claude-sonnet-4-6 · 2026-06-15 06:56 · grounding rag
Model Answer
Option C: To regulate foreign trade into the country.
Trade barriers like taxes on imports are used by governments to increase or decrease (regulate) foreign trade and to decide what kinds of goods, and how much of each, should come into the country.
Source: Liberalisation of foreign trade and foreign investment policy, Chapter 4
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Explanation
- Option A is wrong — trade barriers restrict foreign companies, not promote them.
- Option B is wrong — trade barriers do not directly control domestic production.
- Option D is wrong — the purpose is to regulate, not completely stop, foreign trade.
- The textbook explicitly states: "Governments can use trade barriers to increase or decrease (regulate) foreign trade and to decide what kinds of goods and how much of each, should come into the country." This makes C the correct and precise answer.
- Remember: "regulate" is the key word here — trade barriers manage/control the flow of trade, they don't eliminate it entirely.
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