ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Barriers include administrative procedures, quantitative restrictions (such as quotas), price controls, licensing requirements, product labelling requirements and privacy requirements. Trade barriers take two forms: Tariff barriers-Tariff barriers are taxes imposed by a government on imports or exports of goods.

Detailed explanation-2: -Trade barriers refer to the obstacles that are put in place by governments to limit free trade between national economies. Trade barriers are thus essentially interventions in markets that happen to operate internationally.

Detailed explanation-3: -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. The most common barrier to trade is a tariff–a tax on imports.

Detailed explanation-4: -The effects of trade barriers can obstruct free trade, favor rich countries, limit choice of products, raise prices, lower net income, reduce employment, and lower economic output. The law is most commonly used as a trade barrier due to the significant control the government has over it.