ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Embargoes block all trade with another nation. An embargo may be employed for safety reasons, but is more frequently used to punish rogue states (US embargo against Cuba)

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: -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-4: -Barriers to trade in services relate almost exclusively to regulatory measures or bureaucracy. National regulation – such as licences, quotas, professional qualifications and immigration rules – determine when and how foreign providers can enter a market.