Briefly explain the economic barriers to trade and the important factors involved in them.

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Briefly explain the economic barriers to trade and the important factors involved in them.

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The most common barrier to trade is tax on imported goods. Tax increases the price of the imported goods which reduces their demand and and so hampers trade.

Subsidy provided to the domestic goods also acts as a barrier to trade because it reduces the price of domestic goods which in turn increases there demand in comparison to imported goods.

Embargo is a direct barrier to trade. Under this a Country imposes direct restrictions on trade from the other country. This is generally in the form of quotas on the quantity traded.

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Briefly explain the economic barriers to trade and the important factors involved in them.

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Briefly explain the economic barriers to trade and the important factors involved in them.

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Briefly explain the economic barriers to trade and the important factors involved in them.