Tariffs and Barriers

Tariffs and barriers are like the rules of a game in international trade, shaping how countries buy and sell goods across borders. A tariff is essentially a tax on imports, making foreign products more expensive and less attractive to consumers. This tool is often used to protect local industries from global competition. However, non-tariff barriers come into play when countries use regulations, quotas, or licensing requirements to restrict imports without imposing direct taxes. These barriers can be just as effective in limiting trade. Within non-tariff barriers, there are other specific measures, such as subsidies or standards that further control what enters a market. On the other hand, dumping happens when a country sells goods abroad at a price lower than its domestic market or production cost, often with the intention to outcompete local businesses. Together, these elements of international trade policy are critical for understanding how global markets are managed and how countries protect their economies.