European Exam
Trade barrier
A trade barrier is a general term that describes any government policy or regulation that restricts international trade. The barriers can take many forms, including:
Import duties
An import tariff or import duty is a schedule of duties imposed by a country on imported goods. It is paid at a border or port of entry to the relevant government to allow a good to pass into that government's territory.
Import licenses
An import license is a document issued by a national government authorizing the importation of certain goods into its territory. Import licenses are considered to be non-tariff barriers to trade when used as a way to discriminate against another country's goods in order to protect a domestic industry from foreign competition.
Export licenses
Import quotas
An import quota is a type of protectionist trade restriction that sets a physical limit on the quantity of a good that can be imported into a country in a given period of time. For example, a country might limit sugar imports to 50 tons per year. Quotas, like other trade restrictions, are used to benefit the producers of a good in a domestic economy at the expense of all consumers of the good in that economy.
Tariffs
A tariff is a tax on foreign goods upon importation. When a ship arrives in port a customs officer inspects the contents and charges a tax according to the tariff formula. Since the goods cannot be landed until the tax is paid, it is the easiest tax to collect, and the cost of collection is small.
Subsidies
In economics, a subsidy is a type of financial government assistance, such as a grant, tax break, or trade barrier, in order to encourage the production or purchase of a good. The term subsidy may also refer to assistance granted by others, such as individuals or non-government institutions, although this is more commonly described as charity.
Non-tariff barriers to trade
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