Question

List 6 different types of barriers that may be found in some industries and discuss.

Answer 1

Trade barriers are government induced restrictions on international trade. They are specially design for the following: Increase trade ,Weaken trade,Restrict trade .

Trade barriers are of two types : 1) Non -tariff barrier 2) Tariff barrier

Types of non tariff barriers are : 1) Quotas :also known as import quotas is a type of trade barrier that sets a physical limit on the quota of the goods that can be import like 100 tonnes of iron only.

2) Embargoes are the trade prohibition restriction imposed on a particular entity .There will not be a single trade.

3) Import licencing requirement : The licensing requirement for the import of a perticular goods in the territory.

4)Subsidies : A subsidy is form of financial aid or support by the government for a particular economic sector as subsidy given for perticular industry by the government will lower down the cost of the product of that industry .

5) Trade restrictions It is the artificial restrictions on trade between two or more countries as a result to safeguard their industries.

6) Tariff barrier : custom duty :Custom duty is the indirect tax levied on the imports or exports of goods in the international trade high custom duty is a trade barrier as it makes the goods costly for the exporting country .