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International trade- trade barriers - Coggle Diagram
International trade- trade barriers
governments have traditionally preferred that customers buy domestically made products in hopes that such purchases would increase the number of domestic businesses and workers
governments have actively used trade barriers to make it much more expensive or difficult or sometimes impossible for customers to buy or consume imported goods
protectionism
a government's use of trade barriers to shield domestic companies and their workers from foreign competition
two general kinds of trade barriers used by government
traiff
direct tax imposed on imported goods
increase the cost of imported good relative to that of domestic goods
non traiff
non tax methods of increasing the cost or reducing the volume of imported good
five types of non type barriers
quotas
specific limits on the number or volume of imported products
voluntary export restraints
like quote's voluntary export restraints limit the amount of a product that can be imported annually
the difference is that the exporting country rather than the importing country imposes restraints usually however the voluntary offered to limit export occurs because the importing country has implicitly threatened to impose quotas
government import standards
extensively established to protect the health and safety of citizens but in reality are often used to restrict imports
government subsidy's
long term low interest loans cash grants and tax deferments to develop and protect companies in special industries
customs valuation in classification
as products are imported into a country there examined by custom agents who must decide which of nearly 9000 categories they should be classified
there are so many different kinds of non tariff barriers there can be even more potent method of shielding domestic industries from foreign competition