WORLD HISTORY

Detailed explanation-1: -Tariffs provide a country with extra revenue and they offer protection to domestic producers by causing imported items to become more expensive. Quotas are more effective in restricting trade than tariffs, especially if domestic demand for something is not price-sensitive.

Detailed explanation-2: -Tariff rate quotas permit a specified quantity of imported merchandise to be entered at a reduced rate of duty during the quota period. Once the tariff-rate quota limit is reached, goods may still be entered, but at a higher rate of duty.

Detailed explanation-3: -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.

Detailed explanation-4: -Trade barriers decrease the demand for imports by making them more costly. The problem is that trade partners may retaliate by increasing prices for exports. This doesn’t create a fix for the problem, especially if domestically produced goods lack quality or are not competitive enough.

Detailed explanation-5: -Import Quotas An import quota is a restriction placed on the amount of a particular good that can be imported. This sort of barrier is often associated with the issuance of licenses.