Trade barriers

Trade barriers are government policies which place restrictions on international trade. Trade barriers can either make trade more difficult and expensive (tariff barriers) or prevent trade completely.Below you can see some examples of Trade Barriers:Tariff Barriers. These are taxes on certain imports. They raise the price of imported goods making imports less competitive.Non-Tariff Barriers. These involve rules and regulations which make trade more difficult. For example, if foreign companies have to adhere to complex manufacturing laws it can be difficult to trade.Quotas. A limit placed on the number of importsVoluntary Export Restraint (VER). Similar to quotas, this is where countries agree to limit the number of imports. This was used by the US for imports of Japanese cars.Subsidies. A domestic subsidy from government can give the local firm a competitive advantage.Embargo. A complete ban on imports from a certain country. E.g. US embargo with Cuba.

"Trade Barriers are obstacles for trade. These are measures that make trade more difficult or less attractive, and thus discourage trade. For example, some of the trade barriers are: 1. Import duties (they increase the price of imported goods, and thus make the import less attractive) 2. Inefficient border controls cause a delay (in clearing goods) at the border, which in turn causes disruptions to the supply chains of companies that rely on the goods. 3. Administrative procedures for import/export, e.g. the need to submit paper-based documents, the need to provide the border control authorities extra information, the need to translate documents for the authorities. All these extra efforts by the exporter/importer cost time and money, and hence they make trade less attractive. 4. Complex IT requirements: if exporters and importers are required to submit data to multiple government agencies, they entail extra IT costs. Also, these costs become “costs of trade”, making trade less attractive."