Import duty and tariffs is an instrument used for international trade restriction and so is __________?

Analyze the question: The question asks for another instrument of trade restriction (a protectionist measure) besides import duties and tariffs.

Explain the concept: Governments restrict international trade using:

• Tariffs/import duties: taxes on imported goods
• Quotas: limits on the quantity imported
• Embargo: a total ban on trade with a country or in certain goods
• Import/trade licensing: requiring permission before goods can be imported or exported
• Exchange control: limiting access to foreign currency
• Subsidies to local producers

Evaluate the options:

• A. Preferential duties: These are lower tariffs given to certain countries. They are a form of trade favour or discrimination, and they are still a type of tariff, so they don't add a separate restriction method.
• B. Preferential treatment: This means giving special advantages to some trading partners. It tends to encourage trade, not restrict it.
• C. Entrepot: This is a trade practice of importing goods in order to re-export them. It is not a restriction.
• D. Trade license: The government controls who may import or export, and how much, by requiring a license. This is a non-tariff barrier and a real restriction on trade.

Answer: Option D, Trade license.

Tip: For "trade restriction" questions, think of the restriction tools: tariffs, quotas, embargo, licensing, exchange control. Anything that sounds like "preferential" or "entrepot" is usually about trade arrangements, not restrictions.