Question
What are tariff and non-tariff barriers ? How do these barriers help in regulating business ?
Answer :
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Tariffs and non-tariff barriers (NTBs) are two primary forms of trade barriers used by governments to regulate international trade and protect domestic industries. These measures influence the flow of goods and services across borders and impact businesses operating in the global market.
Tariffs refer to taxes or duties imposed on imported goods and sometimes on exported goods. They are typically imposed by governments to make imported products more expensive, thereby providing protection to domestic industries. Tariffs can be specific (a fixed fee for each unit of the imported product) or ad valorem (a percentage of the product's value). The primary purpose of tariffs is to safeguard domestic industries by making foreign products less competitive in terms
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