Export subsidy
to encourage export of goods discourage sale of goods on the domestic market low-cost loans through tax relief for exporters government financed reduces the price paid by foreign importers domestic consumers pay more than foreign consumers Most applied for agricultural and dairy products can also be a perpetual inflation machine the government subsidizes the industry based on costs an increase in the subsidy is directly spent on wage hikes demanded by employees international advertising Research and Development

government policy

Now the wages

in the subsidized industry are relatively higher than elsewhere

It causes the other employees demand higher wages

7. Export licenses 6. Embargo 5. Import duty

This is then reflected in prices resulting in inflation everywhere in the economy

Types of Trade barriers

2. Non-tariff barriers to trade
restrict imports but not in the usual form of a tariff Some are expressly permitted in very limited circumstances Profile when deemed necessary to protect health, safety, or sanitation depletable natural resources

Local Content 4. Requirements

dictate particular manufacturing guidelines or product specifications Product Standards & Technical Regulations If products do not meet the given requirements, they will face an import ban

3. Voluntary Export Restraints
on the quantity of goods a government imposed limit that can be exported out of a country during a specified period of time

the import-competing industries arise when seek protection from a surge of imports from particular exporting countries

appease the importing country the other party offered by the exporter to deter from imposing are rarely completely voluntary
Trade barriers II.mmap - 19/04/2009 - Carlos Mondragón


more explicit less flexible

trade barriers