BASIC TRADE BARRIERS: TARIFFS AND QUOTAS

Abstract

This paper explores the essential features of trade barriers, specifically concentrating on tariffs and quotas as the main tools for managing international trade. It analyzes the economic reasons for enacting these barriers, their influence on domestic industries, and their overall effects on global trade patterns. The study emphasizes that although tariffs and quotas are typically established to safeguard national economies, encourage local production, and reduce reliance on foreign products, they can also disrupt market efficiency and lead to retaliatory trade actions. Thus, grasping the balance between protective strategies and free trade ideals is vital for achieving sustainable economic growth in today’s global economy.