Explain the concept of trade barriers.

Economics Balance Of Trade Questions



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Explain the concept of trade barriers.

Trade barriers refer to any government-imposed restrictions or policies that limit or regulate the flow of goods and services between countries. These barriers can take various forms, including tariffs, quotas, embargoes, subsidies, and regulations. The primary purpose of trade barriers is to protect domestic industries and markets from foreign competition, safeguard national security, and address other economic and political objectives. However, trade barriers can also hinder international trade, limit consumer choices, increase prices, and reduce overall economic efficiency.