ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Governments three primary means to restrict trade: quota systems; tariffs; and subsidies. A quota system imposes restrictions on the specific number of goods imported into a country. Quota systems allow governments to control the quantity of imports to help protect domestic industries.

Detailed explanation-2: -The main types of trade barriers used by countries seeking a protectionist policy or as a form of retaliatory trade barriers are subsidies, standardization, tariffs, quotas, and licenses.

Detailed explanation-3: -The major obstacles to international trade are natural barriers, tariff barriers, and nontariff barriers.

Detailed explanation-4: -The four main types are protective tariffs, import quotas, trade embargoes, and voluntary export restraints. The most common type of trade barrier is the protective tariff, a tax on imported goods. Countries use tariffs to raise revenue and to protect domestic industries from competition from cheaper foreign goods.