trade barriers are stuffs that restricts trade:
1. quotas on imports or exports
2. tariff fees on exports or imports
Why put barriers to trade?
1. protect domestic infant industry
if you trade to get what you want, domestic industries suffer because you need to import expensive goods from abroad and domestic industry cannot compete
2. prices on imported goods are higher than prices of local goods
Trade barriers are measures that give domestic producers an artificial advantage over overseas producers. Trade barriers include quotas, tariffs, subsidies, embargoes and voluntary export restraint (VER). The goal of trade barriers is to restrict international trade and to encourage domestic production in the protected industries.
Countries use protectionism to protect their infant industries until they can mature and take advantage of economies of scale. Protectionism is also aimed to prevent dumping (when an overseas firm sells its product in another country below its cost of production), to protect employment in industries facing foreign competition and to promote more diversified sectors in the domestic economy.
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