1. Tariffs: A tariff is a tax imposed on imported goods, making them more expensive in the domestic market compared to locally-produced goods. This creates a barrier to entry for foreign companies looking to sell their products in a particular country.
2. Quotas: A quota is a limit placed on the quantity of a particular product that can be imported into a country during a specific period. By restricting the amount of foreign goods that can enter the market, quotas can protect domestic industries from foreign competition, but they can also limit consumer choice and lead to higher prices.
Give two examples of trade barriers
1 answer