duty imposed on goods when moved across a political boundary Profile They are usually associated with protectionism

are usually imposed on imported goods may also be imposed on exported goods ad valorem tariff a set percentage specific tariff a specific amount of money of the value of the good that is being imported

1. Tariffs
Types

does not vary with the price of the good revenue tariff a set of rates designed to raise money for the government protective tariff intended to prohibitive tariff one so high that nearly no one imports any of that item artificially inflate prices of imports protect domestic industries from foreign competition

Types of Trade barriers

a document issued by a national government authorizing the importation of certain goods into its territory considered as 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

Import 2. licenses

Each license specifies the volume of imports allowed Can be sold to importing companies at a competitive price or simply a fee

this allocation methods it is argued that provides incentives for political lobbying bribery

on the quantity of a good sets a physical limit that can be imported into a country in a given period of time

the producers of a good in a domestic economy

Import 3. quotas

Used to benefit

at the expense

of all consumers of the good in that economy corruption (bribes to get a quota allocation)

Critics say quotas often lead to

smuggling (circumventing a quota) higher prices for consumers

Trade barriers.mmap - 18/04/2009 - Carlos Mondragón