Trade Barrier

Summary of Trade Barrier

Constraints upon the exchange of goods among nations imposed by governments; such constraints are manifested in the form of tariffs, quotas, exchange controls, and a variety of so-called nontariff barriers. Barriers usually arise to protect domestic industries, preserve foreign exchange, reduce unemployment, or retaliate for barriers established by other nations; also barriers may arise out of protracted political disputes among nations, although the object in such cases is the advancement of political rather than economic objectives. The effect of trade barriers is to reduce trade, thereby denying a more efficient use of the world's resources.

(Main Author: William J. Miller)

Trade Barrier and International Trade Economy

In relation to international trade economy, Christopher Mark (1993) provided the following definition of Trade Barrier: Any governmentally-imposed constraint upon the international exchange of goods or services. Such constraints can take the form of tariffs, quotas, exchange controls, or nontariff barriers (Sec.I). Trade barriers usually are applied in order to meet an economic objective such as protecting domestic industries, reducing unemployment, or preserving foreign exchange, although they may also arise from political disputes among countries or in retaliation for barriers maintained by trading partners.

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See Also

• International Trade
• Trade Regulation
• International Economic Law
• Export License
• International Trade Law
• Foreign Trade
• Safeguard