Question

What is a trade barrier

Answer 1

A trade barrier refers to any government-imposed restriction or measure that hinders international trade between countries. It can take various forms, including tariffs (taxes on imported goods), quotas (limits on the quantity of imported goods), embargoes (complete bans on certain imports or exports), subsidies (financial assistance or incentives for domestic industries), import licenses (permission required to import certain goods), and technical barriers to trade (regulations and standards that can make it difficult for foreign companies to enter a market). The primary purpose of trade barriers is to protect domestic industries and producers from foreign competition, but they can also lead to higher prices for consumers, reduced market access for exporters, and limited competition and innovation within domestic markets.