Barriers On International Trade

Nations trade with one another because they expect to benefit from the transaction. Trade enables them to exchange things they don’t need for the things they do need. But sometimes imports mean fewer jobs and less income for some domestic industries. Exports represent increased jobs and incomes for other industries. That is why government must use trade restrictions.

Trade can be restricted in a number of ways. One of then are tariffs. There are a types of tariffs: revenue and protective tariffs. Revenue tariffs are levied as a way to raise money. Protective tariffs are levied to protect a domestic industry from competitions.

Other restriction are called quotas. Quotas are the restrictions on the member of goods that can enter the country.

Another tactic is called administrative red tape. This is the use of some rules and regulations that males importing more difficult.

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