Norvada is a small nation that has followed protectionist policies for many years. Which of the following would be an example of a nontariffbarrier established by Norvada? A. Establishment of a tax levied on imported goods so that foreign products are more expensive than competing domestic goods. B. Establishment of a tax levied on imported goods designed primarily to raise money for the government. C. Establishment of restrictive quality standards requiring foreign firms to make expensive modifications to their products before they could be exported to Norvada. D. Participation in the Uruguay

Answer: C. Establishment of restrictive quality standards requiring foreign firms to make expensive modifications to their products before they could be exported to Norvada

Explanation: Protectionist policies shield the domestic market from competition with foreign firms. This is done by levying tariffs on imported goods, setting quotas or by supporting the firms in the domestic market with subsidies to make their goods more competitive.

A tariff is a form of tax levied on imported goods while a Non-tariff barrier is any policy that makes use of other controls besides levies. An example of a Non-tariff barrier is a severe quality requirement for foreign products to be imported into Norvada.