ENTREPRENEURSHIP

Detailed explanation-1: -A nontariff barrier is a trade restriction–such as a quota, an embargo, or a sanction–that countries use to further their political and economic goals. What Is a Tariff and Why Are They Important? A tariff is a tax imposed by one country on the goods and services imported from another country.

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: -Embargo. An embargo is a political decision to stop transactions with individual countries, including export or import activities. Embargoes may only apply to some products. Or, it may include all goods and services. Embargoes are often for political rather than economic reasons.

Detailed explanation-4: -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-5: -Tariffs and quotas are two common forms of trade restrictions that government imposes to protect domestic producers. Tariffs are taxes on imports; quotas are quantity limits on how many imports can enter the country.