Trade Barrier


 
 
Concept Explanation
 

Trade Barrier

Trade Barrier: Trade barrier is a government imposed restriction on the free international exchange of goods or services. Tax on imports (called import duty) is an example of a trade barrier. It is called a barrier because some restriction has been set-up. Governments can use trade barriers to increase or decrease (regulate) foreign trade and to decide what kinds of goods and how much of each, should come into the country. Similarly 'Quotas are a way of restriction on volume or quantity of goods to be imported or exported.

Quotas - These are government imposed trade restrictions that limits the Number or Values of Goods & services that can be imported or exported during a particular time period . Quotas are used in international Trade To help regulate The volume of Trade Between Countries . 

 
 


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