ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -A nontariff barrier is a trade restriction–such as a quota, embargo or sanction–that countries use to further their political and economic goals. Countries usually opt for nontariff barriers (rather than traditional tariffs) in international trade. Nontariff barriers include quotas, embargoes, sanctions, and levies.

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: -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: -There are three main types of barriers to international trade that you should know: tariffs, quotas, and other non-tariff barriers. Tariffs: taxes that a government adds on imported goods. The higher the tariff, the less international trade between countries.

Detailed explanation-5: -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