ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -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-2: -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-3: -Answer: Trade barriers are restrictions set up by the government against foreign trade and foreign investment. This was done to protect the growing domestic producers against the competition of the foreign producers. Prior to 1991, in India, trade barriers existed in the form of tax on imports.

Detailed explanation-4: -Tariffs are a tax on imports. Quotas are a limit on the number of a certain good that can be imported from a certain country. Embargoes occur when one country bans trade with another country. More items