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.

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: -Trade barriers take two forms: Tariff barriers-Tariff barriers are taxes imposed by a government on imports or exports of goods. These taxes can be used to increase the cost of imported products, make inputs available to domestic producers at more competitive prices and raise revenues for governments.

Detailed explanation-4: -Trade barriers are tariffs, quotas, and embargos. Tariffs-Tariffs are the taxes imposed on imports of different merchandise and services to secure and protect domestic producer’s. Quotas-It is a trade barrier that restricts the amount of products and services that can be imported or exported.

Detailed explanation-5: -Tariff Barriers. A tariff is a tax imposed by a nation on imported goods.