COURSES : ECONOMICS
LECTURER : BODE RILEY
CREDIT HOURS : 3 CREDIT
SEMESTER/SESSIONS : 4 SEMESTER, 2022/2023 SESSIONS
Barriers to international trade and how to overcome them
Barriers to international trade are anything that can impede the flow of goods,
services or investment between countries. There are several types of trade
barriers, including:
1. Tariffs: Taxes imposed on goods imported from abroad to protect domestic
industry. Tariffs can make imported goods more expensive, thereby
reducing their competitiveness.
2. Quotas: Limits on the amount of goods imported from abroad. Quotas can
be imposed to protect domestic industry or to balance the trade balance.
3. Subsidies: Providing support or assistance from the government to
domestic industries so they can compete with imported products. Subsidies
can hurt overseas producers and become a barrier to international trade.
4. Technical standards: Technical or regulatory requirements that must be
met by imported goods before being sold on the domestic market.
Technical standards can become barriers to trade if they are not adapted to
international standards or if they are used to restrict imports.
5. Discrimination: Unfair treatment of imported goods compared to
domestically produced goods. Discrimination can be enforced through
different tariffs or quotas between imported and domestically produced
goods.
Ways to overcome barriers to international trade include:
1. Trade liberalization: Reduction or elimination of tariffs, quotas or other
trade barriers. Trade liberalization can increase trade flows and provide
benefits for all countries.
2. Standard harmonization: Governments can adopt international standards
to circumvent technical trade barriers. This can help improve product
efÏciency and competitiveness.
Bilateral or multilateral negotiations: Negotiations between the governments of
two countries or several countries to overcome trade barriers. Negotiations may
include reducing tariffs or quotas, harmonization of standards, or removal of
other trade barriers.
Free trade agreement arrangements: Free trade agreements remove trade
barriers between the countries involved. This can help increase trade flows and
benefit all countries.
Increase transparency: Governments can improve trade policy transparency and
avoid discrimination. This can help reduce trade barriers and increase trade flows.
