Question

 

Distinguish between tariff and non- tariff barriers. Explain various non- tariff barriers to restrict the international trade.

24 Oct 2025
Answer :
Word Count : 513
Tariff and non-tariff barriers are key instruments used by countries to regulate and control international trade. While both are designed to protect domestic industries and balance trade deficits, they differ in their form, operation, and impact. A tariff barrier refers to a tax or duty imposed on imported goods, which increases their price in the domestic market. By making imports more expensive, tariffs aim to encourage consumers to buy locally produced goods. Tariffs can be specific, based on a fixed amount per unit of imported goods, or ad valorem, calculated as a percentage of the product’s value. In contrast, non-tariff barriers (NTBs) are restrictions other than duties that governments use to control the quantity or quality of goods entering or leaving a country. These barriers are less transparent and can take many forms such as quotas, import licensing, technical standards, and administrative regulations. Non-tariff barriers have become increasingly significant
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