Question

Are you in favor of using trade restrictions to regulate international trade? 75 words or more

Answer 1

International trade is the action performed of buying and selling the goods and services over the nation. Depending upon the trade barriers the industries will decide to import or export the goods and services, since it depends on the financial burden.

Trade barriers definitely help the nation and one should be in favor of it. Trade barriers looks like a negative impression, but it helps to increase the economy of a particular country by reducing imports. The trade barriers are imposed by the government by placing rules and regulations, tariffs, import quotas and embargos.

1. The trade barriers are commonly used to protect domestic employment. The imports from the foreign market produce a competition with the domestic production. Most of the domestic consumers buy the imports other than the domestic production, because of cheap foreign labour and lack of regulations. However, the goods produced by the foreign wages are cheaper compare to the domestic producers, so most of the consumers purchase foreign goods. Due to this there will be raise of unemployment since the foreign labour was cheap.

2. The infant industries can be protected using tariffs by strategy of Import Substitution Industrialization (ISI) used by many nations.

3. The foreign industries perform unfair trade to gain the advantage from the domestic producers. The main intention of foreign products is to sell them at low prices compared to the domestic products in the domestic economy, since the foreign products can get by low subsidize price of their government. So trade barriers prevent the foreign producers from unfair trade.

4. Trade barriers prevent the country by restricting the imports and allow more domestic production.

5. Instead of imposing a quota on number of goods or services to be imported, the government can put a restriction on certain goods made domestically. Foreign companies face a problem of exporting assembled products and cost to sell the product is also high, so instead of assembled products some of the products are done in domestic market.