Barriers to trade: Difference between revisions
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Revision as of 12:22, 6 November 2022
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According to European Commission [1], “A trade barrier refers to any regulation or policy that restricts international trade, especially tariffs, quotas, licenses, etc.”
The beginning and idea of International Trade Barriers
The single most fundamental understanding in international economics is that there are benefits from trade; when countries sell goods and services to one another, there is always a mutual advantage[2] Free trade increases global output and benefits all nations. However, practically all states restrict the free flow of international trade in some way with different trade barriers. Since these limits and regulations apply to the trade or commerce of the nation, they are commonly referred to as trade or commercial policies.[3]
The history of trade barriers goes back to the 16th of century, since the emergence of modern nation-states when governments have been concerned about the impact of international competition on the prosperity of domestic industries. They have either attempted to shield domestic industries from foreign competition by limiting imports or to aid them in international competition by subsidizing exports [4]
References
Author: Annija Petersone
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- ↑ European Commission. (n.d.). Trade barrier. Trade barrier | Access2Markets. Retrieved November 6, 2022, from https://trade.ec.europa.eu/access-to-markets/en/glossary/trade-barrier
- ↑ Krugman, P. R., Obstfeld, M., & Melitz, M. J. (2018). International Trade: Theory & Policy (p.28) (11th Edition). Pearson Education.
- ↑ Salvatore, D. (2013). International Economics (p.221) (Eleventh Edition). Wiley.
- ↑ Krugman, P. R., Obstfeld, M., & Melitz, M. J. (2018). International Trade: Theory & Policy (p.28) (11th Edition). Pearson Education.
