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International trade

Bella Ubi単a
Bella Ubi単a

International trade barriers restrict the flow of goods and services between countries. The main types of trade barriers are tariffs, import quotas, embargoes, and voluntary export restraints. Governments impose these barriers to protect domestic industries from foreign competition and argue it preserves domestic jobs. However, trade barriers raise prices for consumers and can harm economic growth. While protectionism has some benefits, most experts argue that free trade is typically more beneficial for economies over the long run.

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International Trade Trade Protection and Barriers By: Annabelle Morong
Any regulation or policy imposed by the government that restricts international trade. The policy of erecting trade barriers to shield domestic markets from foreign competition is called Protectionism.
Types of Barriers Protective Tariff Import Quota Embargo Voluntary Restraint Export
Types of Trade Barriers Tariffs Tax on imported goods designed to protect domestic producers from foreign competition Most common type of trade barrier Easiest to impose; easily applied to goods before they enter the country Tariffs make all goods more expensive
International trade
Type of Trade Barriers Import Quota Specifies the maximum amount of a commodity that may be imported in a particular period. Protects domestic industries but do not raise revenue for the government. It also raises prices for consumers as costlier domestic items replace cheaper imports once quota is reached.
Types of Trade Barriers Embargo severe form of trade restriction in which a nation completely bans the importing of products from another country or forbids exporting its own products to that country. Example: Arab states embargo on travel and trade Qatar
Types of Trade Barriers Voluntary Export Restraint a trade barrier by which foreign firms voluntarily limit the amount of their exports to a particular country. Also known Export Quota, self-imposed by the exporting country
Types of Barriers
Why are Tariffs and Trade Barriers Used? Domestic employment protection argument Consumer protection argument Infant industry argument National security argument Retaliation argument Protection-as-bargaining-chip argument Environmental-and-labor-standards argument
Domestic employment protection argument Why are Tariffs and Trade Barriers Used? It assumes that allowing cheap imports into a country destroys jobs by forcing domestic companies to cut costs, lay off workers, or even go out of business.
Why are Tariffs and Trade Barriers Used? A government may levy a tariff on products that it feels could endanger its population.
Why are Tariffs and Trade Barriers Used? Protecting Infant Industries The infant-industry argument for protection holds that government should protect an emerging industry until it is able to compete on its own.
Why are Tariffs and Trade Barriers Used? National security argument This argument states that industries that are vital to national security must be protected. Trade restrictions are needed to avoid dependence on foreign suppliers during times of conflict.
Retaliation Why are Tariffs and Trade Barriers Used? Tariffs is employed if trading partner has not played by the rules.
Why are Tariffs and Trade Barriers Used? Protection against Anti-Dumping argument Foreign producers are thought to be selling goods at prices below their production costs, below the prices charged in their home producers.
Why are Tariffs and Trade Barriers Used? Protection-as-bargaining-chip argument This argument states that trade restrictions can be a useful bargaining tool in trade negotiations with other countries.
Why are Tariffs and Trade Barriers Used? Environmental and labor standards argument Countries with lax environmental or labor laws have an economic advantage over countries that must comply with stricter laws.
International trade

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International trade

  • 1. International Trade Trade Protection and Barriers By: Annabelle Morong
  • 2. Any regulation or policy imposed by the government that restricts international trade. The policy of erecting trade barriers to shield domestic markets from foreign competition is called Protectionism.
  • 3. Types of Barriers Protective Tariff Import Quota Embargo Voluntary Restraint Export
  • 4. Types of Trade Barriers Tariffs Tax on imported goods designed to protect domestic producers from foreign competition Most common type of trade barrier Easiest to impose; easily applied to goods before they enter the country Tariffs make all goods more expensive
  • 6. Type of Trade Barriers Import Quota Specifies the maximum amount of a commodity that may be imported in a particular period. Protects domestic industries but do not raise revenue for the government. It also raises prices for consumers as costlier domestic items replace cheaper imports once quota is reached.
  • 7. Types of Trade Barriers Embargo severe form of trade restriction in which a nation completely bans the importing of products from another country or forbids exporting its own products to that country. Example: Arab states embargo on travel and trade Qatar
  • 8. Types of Trade Barriers Voluntary Export Restraint a trade barrier by which foreign firms voluntarily limit the amount of their exports to a particular country. Also known Export Quota, self-imposed by the exporting country
  • 10. Why are Tariffs and Trade Barriers Used? Domestic employment protection argument Consumer protection argument Infant industry argument National security argument Retaliation argument Protection-as-bargaining-chip argument Environmental-and-labor-standards argument
  • 11. Domestic employment protection argument Why are Tariffs and Trade Barriers Used? It assumes that allowing cheap imports into a country destroys jobs by forcing domestic companies to cut costs, lay off workers, or even go out of business.
  • 12. Why are Tariffs and Trade Barriers Used? A government may levy a tariff on products that it feels could endanger its population.
  • 13. Why are Tariffs and Trade Barriers Used? Protecting Infant Industries The infant-industry argument for protection holds that government should protect an emerging industry until it is able to compete on its own.
  • 14. Why are Tariffs and Trade Barriers Used? National security argument This argument states that industries that are vital to national security must be protected. Trade restrictions are needed to avoid dependence on foreign suppliers during times of conflict.
  • 15. Retaliation Why are Tariffs and Trade Barriers Used? Tariffs is employed if trading partner has not played by the rules.
  • 16. Why are Tariffs and Trade Barriers Used? Protection against Anti-Dumping argument Foreign producers are thought to be selling goods at prices below their production costs, below the prices charged in their home producers.
  • 17. Why are Tariffs and Trade Barriers Used? Protection-as-bargaining-chip argument This argument states that trade restrictions can be a useful bargaining tool in trade negotiations with other countries.
  • 18. Why are Tariffs and Trade Barriers Used? Environmental and labor standards argument Countries with lax environmental or labor laws have an economic advantage over countries that must comply with stricter laws.