Types of Trade Barriers

Tariff barriers official constraints on the importation of certain goods or services.

Takes the form of a limitation or a special levy.

Non-tariff barriers indirect measures that discriminate against foreign manufacturers.

topic: International Trade Theory and Application

Tariffs
Surcharges that importer must pay above and beyond taxes leveled on domestic goods and services. Transparent and based on the value of the product or service. Optimal Tariff theory governments can capture a portion of the manufactures profit margin. Infant Industry theory a industry new to a country can be protected against established global players.
topic: International Trade Theory and Application

Quotas
Quantitative limits on the importation of goods. Definitive, quantifiable protection of the domestic producers. Rule of origin administration of tariffs and quotes based on the country origin.

topic: International Trade Theory and Application

Export Controls
Limitation of the type of products that can be exported to other countries.
National security risks Dual purpose products Goods vital to domestic industry

Companies often argue that countries will get the products from a competitor.

topic: International Trade Theory and Application

Dumping and Anti-Dumping

Dumping - Selling a product at an unfairly low price. Undermines the principles of comparative advantage. WTO allows anti-dumping laws where there has been material injury to the domestic industry.

topic: International Trade Theory and Application

Non-Tariff Barriers
Administrative Barriers used to block the entry of products while arguing that no barrier exists Production Subsidies payments provided by a government to domestic companies to make them more competitive. Emergency Import Protection implemented to protect against a surge in imports Foreign Sales Corporations offshore corporations that market products and services of firms in foreign countries.
topic: International Trade Theory and Application

Non-Tariff Barriers
Embargoes the prohibition of exportation to a designated country. Boycotts the blank prohibition on importation of all or some goods from a designated country. Technical Standards requiring a company to demonstrate that their products meet the countrys domestic standards. Corruption Barriers to Service Trade
topic: International Trade Theory and Application