Question

how do trade barriers affect international marketing? if you can also add some examples that would be greatly appreciated! thank you.

Answer 1

Obstacles to trade come in many forms. Quota is one thing. This is when a nation sets a cap on the goods it imports. That's for a number of reasons. One is because the importing country's government needs to protect its domestic producers. Added costs such as tariffs, penalties and taxes are also other obstacles or restrictions. Through blocking the flow of goods from producers to consumers, trade barriers will influence international trade in this way. Where quotas, tariffs and duties hinder this influx, this will have an effect on producers ' profitability, although they will typically try other markets without these barriers.

Countries apply restriction measures such as tariffs, quotas, discounts and exchange caps to secure their economies. Through applying protectionism, a country can gain from it such as defending infant factories, dumping and protecting manufacturing industries, but on the other hand it can also have issues such as dysfunctional companies, retaliation and resource misallocation and directly related to international trade countries benefiting from competitive and absolute advantages and economies of scale.

International trade increases the amount of goods domestic customers can choose from, reduces the cost of those goods by increasing competition, and encourages domestic industries to export their products abroad. While these all seem to be positive, free trade is not widely accepted as being inherently beneficial to all parties. This article will discuss why this is the case, and how countries are reacting to the variety of factors that try to influence trade.