ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The most direct barrier to trade is an embargo– a blockade or political agreement that limits a foreign country’s ability to export or import. Embargoes still exist, but they are difficult to enforce and are not common except in situations of war.

Detailed explanation-2: -TANC classifies foreign trade barriers within four broad types: Border Barriers, Technical Barriers to Trade, Government Influence Barriers, and Business Environment Barriers.

Detailed explanation-3: -Trade Agreements and Organizations Free trade is encouraged by a number of agreements and organizations set up to monitor trade policies. The two most important are the General Agreement on Tariffs and Trade and the World Trade Organization.

Detailed explanation-4: -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.