International Trade

Annotations:

• The goods and services from one political region may be prohibited from entering or leaving a market

1. Tariffs
2. Non Tariff Barriers (NTBs)
   1. Quotas

      Annotations:

      •  specific limits on the quantity of imports or their value.
   2. Subsidies

      Annotations:

      • payments made to particular industries to help them to be competitive on the international market. Examples of subsidies include depreciation allowances, cash grants and tax holidays. 
   3. Administrative Regulations

      Annotations:

      • include bureaucratic procedures, systems of advance payment, minimal domestic content rules, special marketing standards and health and safety provisions. 
   4. Currency Controls

      Annotations:

      • limit the availability of foreign currency for the purchase of foreign goods. 
   5. Voluntary Export Restraints

      Annotations:

      • whereby one country agrees to limit its exports to a third country (or countries). This agreement is usually made because the importing country (countries) threatens to place barriers against the goods of the exporting country.

1. Countries will be better off if they specialize in what they are relatively good at

1. Reduces competition
2. Increases Monopoly power