31- Lan Anh

1. What are trade barriers? Its advantage and disadvantage?

+ Trade barriers are any of a number of government-placed restrictions on trade between

nations
+ Advantage of trade barriers such as higher sales, greater profits, more income to
resource owners
+ Disadvantage of trade barriers is domestic consumers bear higher prices, limited access
to imports

2. What are 5 common reasons/Justifications for trade barriers?

+ protect domestic employment.

+ protect relatively young domestic industries.
+ prevent unfair trade practices of foreign firms.
+ prevent dumping.
+ Protect firms and industries that produce output vital to the security ans defense of the
nation

3. What are 4 common forms of trade barriers?

+ Tariffs are simply taxes placed on imports.

+ Quotas are simply a quantity restriction placed on a good, service and activity.
+ Subsidies are often placed to protect domestic industries.
+ Embargoes basically prohibit the import and export of anything with another country.