ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Ability to serve local customers better. Improved access to supply chains and regional networks. Lower labour and operating costs. Reduction or elimination of legal and other regulatory barriers.

Detailed explanation-2: -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-3: -Trade barriers include tariffs (taxes) on imports (and occasionally exports) and non-tariff barriers to trade such as import quotas, subsidies to domestic industry, embargoes on trade with particular countries (usually for geopolitical reasons), and licenses to import goods into the economy.

Detailed explanation-4: -A barrier to trade is anything that makes it harder to trade goods and services across borders. Barriers to trade can be financial like tariffs; or technical such as laws, regulations, standards, and testing and certification procedures. Free trade agreements exist to reduce or eliminate trade barriers.