1. Effect on economy
1.1. The most common sorts of trade barriers are things like tariffs, quotas, subsidies, and embargoes
1.2. The most common sorts of trade barriers are things like tariffs, quotas, subsidies, and embargoes
1.3. trade barriers also tend to be harmful to domestic consumers
2. Arguments to justify trade barriers
2.1. Types
2.1.1. To protect domestic employment
2.1.1.1. Trade barriers that restrict imports prevent the reduction of domestic production and domestic employment
2.1.1.2. Supporting argument
2.1.1.2.1. Other countries in the foreign sector gain a comparative advantage due to low wages paid to their workers
2.1.2. protect relatively young domestic industries that are not mature enough or large enough to compete with larger, more mature foreign producers
2.1.2.1. Supporting argument
2.1.2.1.1. foreign firms often engage in unfair trade practices that "unlevel" the competitive playing field
2.1.3. protect firms and industries that produce output vital to the security and defense of the nation
2.1.3.1. prevent the country from depending on these imports and allow greater reliance on domestic production
2.2. Usage
2.2.1. provides logical, reasonable, and necessary justification for the imposition of trade barriers
2.3. Commonly misuse case
2.3.1. Misused especially by politically powerful domestic producers that seek little more than to limit foreign competition, charge higher prices, gain greater market share, and increase profits
2.3.2. Example
2.3.2.1. the infant industry argument is frequently used to justify the protection of large, dominant, and MATURE domestic firms
2.3.2.2. The national security argument is also occasionally used to protect industries that have almost nothing to do with the security of the nation
3. Types
3.1. Tariff
3.1.1. Definition
3.1.1.1. taxes placed on imports. tariff is added to the price of the imported goods
3.1.1.1.1. leads to fewer imports purchased, and then more domestic production is sold
3.2. quotas
3.2.1. Definition
3.2.1.1. a quantity restriction placed on a good, service, or activity
3.3. Subsidies
3.3.1. Definition
3.3.1.1. Are often placed to protect domestic industries
3.3.1.2. intended simply to make certain key goods affordable to citizens of the nation, but the end result can still be to make imports non-competitive
3.3.2. Example
3.3.2.1. Many food crops, for example, are heavily subsidized, to ensure the citizenry has a constant supply of affordable food
3.3.2.2. Steel is also often subsidized, to ensure a nation always has a domestic steel supply, which can be crucial during times of war when normal shipping avenues may be cut off.
3.4. embargo
3.4.1. Definition
3.4.1.1. prohibit the import or export of anything with another country
3.4.2. Usage
3.4.2.1. This is often done as a form of punishment, or to try to force the country to undergo radical change internally as a result of a weakened economic state
4. Definition
4.1. Trade barriers are any of a number of government-placed restrictions on trade between nations
4.2. The most common sorts of trade barriers are things like tariffs, quotas, subsidies, and embargoes
5. Free trade
5.1. free trade refers to the theoretical removal of all trade barriers, allowing for completely free and unfettered trade
6. Free trade bodies
6.1. Usage
6.1.1. curtail the use of trade barriers by nations
6.2. Example
6.2.1. The World Trade Organization
6.2.1.1. enforces strict rules against member nations, restricting the acceptable use of things like tariffs
6.2.2. The European Union
6.2.2.1. does not allow the import of many genetically-modified organisms, which effectively bans the vast majority of food imports from the United States