ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Trade Barriers: Tariffs. A trade barrier, or trade restriction, is a means of preventing a foreign product or service from freely entering a nation’s territory.

Detailed explanation-2: -Protectionism refers to the policy of protecting domestic industries against foreign competition through tariffs, import quotas and subsidies, or other restrictions placed on the imports of foreign competitors.

Detailed explanation-3: -Definition and Examples of Trade Protectionism For example, if a U.S. manufacturer produced goods domestically that were more expensive than foreign imports, the government might enact tariffs, or import taxes, that boost the price of the foreign-made products.

Detailed explanation-4: -Definition of free trade: The unobstructed trade of goods and services between two countries with no restrictions on imports and exports. Definition of protectionism: where a country erects barriers to trade in order to protect the domestic economy from the disadvantages of international trade.

Detailed explanation-5: -Protection on trade occurs when countries impose restrictions on imports into the economy. It can be defined as nation or a group of nations working in conjunction as a trade bloc, creating trade barriers with the specific goal of protecting its economy from the possible perils of international trading.