Trade barrier


Trade barrier

A trade barrier is a general term that describes any government policy or regulation that restricts international trade. The barriers can take many forms, including the following terms that include many restrictions in international trade within multiple countries that import and export any items of trade.
* Import duties
* Import licenses
* Export licenses
* Import quotas
* Tariffs
* Subsidies
* Non-tariff barriers to trade
* Voluntary Export Restraints
* Local Content Requirements
* Embargo

Most trade barriers work on the same principle: the imposition of some sort of cost on trade that raises the price of the traded products. If two or more nations repeatedly use trade barriers against each other, then a trade war results.

Economists generally agree that trade barriers are detrimental and decrease overall economic efficiency, this can be explained by the theory of comparative advantage. In theory, free trade involves the removal of all such barriers, except perhaps those considered necessary for health or national security. In practice, however, even those countries promoting free trade heavily subsidize certain industries, such as agriculture and steel.

Examples of free trade areas

* North American Free Trade Agreement (NAFTA)
* South Asia Free Trade Agreement(SAFTA)
* European Free Trade Association
* European Union (EU)
* Union of South American Nations

Other trade barriers include differences in culture, customs, traditions, laws, language and currency.

ee also

* Copenhagen Consensus
* Customs union
* Agricultural policy


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Look at other dictionaries:

  • trade barrier — ˈtrade ˌbarrier noun [countable] another name for barrier to trade * * *    Artificial restraint on the free exchange of goods and services between countries, usually in the form of tariffs, subsidies, quotas or exchange controls. * * * trade… …   Financial and business terms

  • trade barrier — noun any regulation or policy that restricts international trade • Syn: ↑import barrier • Hypernyms: ↑protectionism • Hyponyms: ↑quota, ↑embargo, ↑trade embargo, ↑trade stoppage …   Useful english dictionary

  • trade barrier — any regulation or policy that restricts international trade, esp. tariffs, quotas, etc. * * * …   Universalium

  • trade barrier — Any action by a government that restricts free trading between organizations within that country and the world outside. Tariffs, quotas, embargoes, sanctions, and restrictive regulations all present barriers to free trade …   Big dictionary of business and management

  • trade barrier — An impediment to a *free market in the *trade of goods or services. See also *protectionism and *tariff …   Auditor's dictionary

  • trade barrier — /ˈtreɪd bæriə/ (say trayd bareeuh) noun a restraint placed on the free flow of goods between two or more countries, thus reducing the overall volume of trade …   Australian English dictionary

  • trade barrier — / treɪd ˌbæriə/ noun a limitation imposed by a government on the free exchange of goods between countries (NOTE: NTBs, safety standards and tariffs are typical trade barriers.) …   Marketing dictionary in english

  • trade barrier — / treɪd ˌbæriə/ noun a limitation imposed by a government on the free exchange of goods between countries. Also called import restriction (NOTE: NTBs, safety standards and tariffs are typical trade barriers.) …   Dictionary of banking and finance

  • non-tariff trade barrier — A non monetary barrier to a foreign product or service, such as a bias against a foreign company s product standards or a rejection of a foreign country s political record …   Big dictionary of business and management

  • barrier to trade — ˌbarrier to ˈtrade noun barriers to trade PLURALFORM [countable] ECONOMICS COMMERCE something that makes trade between two countries more difficult or expensive, for example a tax on imports; = TRADE BARRIER: • Companies have located production… …   Financial and business terms


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