Trade barriers can be tariff barriers, which are taxes on imports or exports, or non-tariff barriers, which are regulations or restrictions that limit trade without directly taxing imports or exports
Match the trade barrier type with its description:
Tariff Barriers ↔️ Taxes on imported goods
Non-Tariff Barriers ↔️ Regulations limiting trade
Quotas and sanitary standards are non-tariff barriers.
True
Order the following examples of tariff barriers:
1️⃣ Customs duties
2️⃣ Import tariffs
3️⃣ Export tariffs
Tariffs increase the price of imported goods, making domestic goods more competitive
Tariffs reduce demand for a country's exports.
True
Consumers face higher prices and reduced choice due to tariffs.
Retaliatory tariffs from trading partners can disrupt international trade flows.
True
Customs duties are examples of tariff barriers to trade.
Tariffs make domestic goods more competitive by increasing the price of imported goods.
Quotas lead to higher domestic prices due to restricted supply of imported goods.
True
Export revenues may decrease due to quotas, which impacts economic activity.
True
How do quotas affect domestic industries in terms of competitiveness?
Increase competitiveness
Quotas are quantitative restrictions governments impose on the amount of a good that can be imported or exported
Give an example of a non-tariff barrier.
Embargoes
Non-tariff barriers protect domestic industries but can harm consumers through reduced choice and higher prices
Trade barriers reduce trade volumes, which are crucial for economic growth.
True
What is the primary goal of trade barriers?
Protect domestic industries
Non-tariff barriers are regulations restricting trade without direct taxes
Sanitary standards are an example of a non-tariff barrier
How do tariffs affect the price of imported goods in domestic markets?
Increase the price
What is the primary impact of quotas on the supply of imported goods in domestic markets?
Reduces the supply
What are quotas in international trade?
Quantitative restrictions on imports
Quotas increase the competitiveness of local producers by reducing competition from imports
Countries that impose quotas export less, reducing access to foreign markets.
True
Match the impact of quotas with the corresponding market:
Higher prices ↔️ Domestic Markets
Reduced exports ↔️ International Markets
Increased competitiveness ↔️ Domestic Industry
What are non-tariff barriers in international trade?
Regulations that limit trade
Non-tariff barriers lead to decreased prices in international markets.
True
Non-tariff barriers result in higher prices and less choice
What is the primary goal of non-tariff barriers?
Protect domestic industries
Trade barriers reduce overall trade volumes, limiting both exports and imports
What is a trade barrier?
Restrictions on goods and services
Embargoes are examples of non-tariff barriers.
True
Customs duties are examples of tariff barriers
What is the key difference between tariff and non-tariff barriers?
Taxes vs. regulations
Tariff barriers directly increase the cost of trade through taxes.
True
What can retaliatory tariffs from trading partners lead to?