Welcome to the International Trade and Business website. International trade can cover anything from simple trade to tourism, and it typically uses the following three barriers:
Tariff Barriers - this is the barrier put on imports in the form of duties, tax and quotas etc. Due to which the imports are less and imported product’s price levels rise while the demand for them decreases.
Non–Tariff Barriers- this is the barrier put by the country on imports by restricting quantity of importing. A fixed quantity is agreed upon for the importing products that make the price level of the imported goods high, and so the supply of foreign goods becomes limited.
Voluntary Constraints - this is the last kind of trade barrier in which the country itself voluntarily stops the incoming products. Due to this barrier the country has power to stop the imports coming frequently into the country and limiting the competition with the foreign goods with the local industries.
These three types of trade barriers should be taken into consideration when deciding to trade internationally. Mostly lower developed countries and the developing countries use these kinds of trade barriers for their international trade and international business. The advantage of these barriers is that the country earns foreign exchange by placing such tariff and non-tariff barriers, the local industries of the country are protected by the foreign competitive industries, less imported goods are brought into the country due to which consumer also buys local products, and that the currency remains in the country due to which government gains benefit in the form of revenue.
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