ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Trade barriers are often enacted to protect industries and workers within a country. This is referred to as protectionism. For example, tariffs, quotas and embargoes make foreign goods more expensive and less available.

Detailed explanation-2: -Trade barriers include any policies and regulations that prevent you from trading goods. Barriers can include tariffs, labelling requirements and local content requirements.

Detailed explanation-3: -Tariffs cause the consumer to pay a higher price for an imported item, increasing the demand for a lower-priced item produced domestically. Quotas are limits on the amount of a good that can be imported into a country. Quotas can cause shortages that cause prices to rise. Embargoes forbid trade with another country.

Detailed explanation-4: -Tariffs are taxes that governments place on imported goods of a specific type. Quotas are import limits that prevent more than a set amount of a specific good from being imported into a country. An embargo is a ban on the trade of a particular good, category of good, or with a specific country.

Detailed explanation-5: -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.