Question

What were the trade barriers in the 1990s?

What were the pros and cons of these barriers?

Answer 1

Answer: During 1990s many trade barriers were still there in the trading policies like

quantitative restriction by various countries on import as well as export of the goods and services.

Duties or tariffs rates were at high level

Exchange rate realted issues like devolution of currencies by various countries of enhance their trade and overvalue the exchange rates.

Administrative regulations on forex allocation etc.

Pros and cons both were there associated with such practices like:

Pros:

1.Such restrictions made an understanding among countries that a proper international organisation dedicated for trade related matters are required to ensure fair trade practices in the world henc an Agreement in form of GATT was replaced by an international organisation WTO.

2.Concepts of Regional ecobomic integaration which supports FTAs ,PTAs gain more importance after WTO.Hence we saw NAFTA and various other FTAs signed after that.

Cons were :

1.such trade practices i.e. devaluation of currency and control on forex allocation leads to unfair trade practices etc.

2.High tariffs and quotas systems hamper the technological progress and favours monopolistic culture in name of saving domestic companies.

3.Consumers were at loss unders such practices as with minimal competion they had to pay more as compared to when there were competitive market.

Hope it helps!.