ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The most common barrier to trade is a tariff–a tax on imports. Tariffs raise the price of imported goods relative to domestic goods (good produced at home). Another common barrier to trade is a government subsidy to a particular domestic industry. Subsidies make those goods cheaper to produce than in foreign markets.

Detailed explanation-2: -A trade barrier is a kind of measure which are introduced by the government or public authorities in order to make imported goods and services are less competitive than locally produced goods and services.

Detailed explanation-3: -The restrictions set by the Government to regulate foreign trade are called trade barriers. Tax on imports is an example of a trade barrier. The Indian Government had put barriers to foreign trade and foreign investment after independence to protect the domestic producers from foreign competition.

Detailed explanation-4: -Tariffs are a tax on imports. Quotas are a limit on the number of a certain good that can be imported from a certain country. Embargoes occur when one country bans trade with another country. More items