Question

Your text talks about two main barriers to international trade, tariffs and non-tariff barriers. For this discussion choose a country and illustrate at least 3 ways these barriers work and under what circumstances they might be applied.

Answer 1

or limits on imports Trade barriers are restrictions on hentional trade imposed by the gover- nment. They are designed to impose additional costs or limits on an a or exports in order to protect local industries. These additional costs or noreased scareity result in a higher price of imported products 1) Tanffs: A Taniffs are takes that are imposed by the government on imported goods or services. They are sometimes also referred to as duties. Tariffs can be implemented to recase the cost of products to consumers in onalen to make them as capensive or more. expensive than local goods or services. In many cases, tariffs are used to protect local industries that could otherwise not compete with forei producers.

c.g. Let' sį assume there are only two countries in the world that produces Candy bours one with $2.08 on with $2.5. If they impose tariff of $2.0 with $100 people will buy candy of $2.5. 2) Non- tanffs: S Noh beriff's are barriers that restrict trade through measure other than the direa imposition of w tan'ffs. This may includle measures such as quality a content requirements of importea gouas or subsidies to : local produceB. By estalishing quality & content requirements the government can reistrict imports, because only. prod-ests can be imported that meet certain criteria. more often than not these chteria are set to benefit 10 coul procedures