Trade Barrier – Government Imposed
A trade barrier is a government-imposed restriction on the flow of goods and services between countries. These barriers can take the form of tariffs, quotas, subsidies, or other regulations that make it difficult or impossible for foreign companies to compete in a domestic market. Trade barriers are used to protect domestic industries from foreign competition, to protect domestic consumers from foreign products, or to raise revenue for the government.
History of Trade Barriers
Trade barriers have been used since ancient times to protect domestic industries from foreign competition. In the Middle Ages, for example, the Hanseatic League imposed tariffs on goods entering their ports. In the 19th century, the United States imposed tariffs on imported goods to protect its infant industries from foreign competition. In the 20th century, the United States and other countries used trade barriers to protect their industries from foreign competition and to raise revenue for the government.
In the 21st century, trade barriers are still used by governments to protect domestic industries from foreign competition, to protect domestic consumers from foreign products, or to raise revenue for the government. However, the use of trade barriers has become increasingly controversial, as they can lead to higher prices for consumers, reduced competition, and slower economic growth.
Comparison of Trade Barriers
| Type of Trade Barrier | Description |
|---|---|
| Tariffs | Taxes imposed on imported goods |
| Quotas | Limits on the amount of a good that can be imported |
| Subsidies | Government payments to domestic producers |
| Regulations | Rules that make it difficult or impossible for foreign companies to compete in a domestic market |
Summary
Trade barriers are government-imposed restrictions on the flow of goods and services between countries. They can take the form of tariffs, quotas, subsidies, or other regulations that make it difficult or impossible for foreign companies to compete in a domestic market. Trade barriers are used to protect domestic industries from foreign competition, to protect domestic consumers from foreign products, or to raise revenue for the government. For more information about trade barriers, visit the websites of the World Trade Organization, the United States Trade Representative, and the European Commission.
See Also
- Tariff
- Quota
- Subsidy
- Regulation
- Protectionism
- Free Trade
- International Trade
- World Trade Organization
- United States Trade Representative
- European Commission
