TRADE BARRIER Meaning and
Definition
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A trade barrier refers to any government-imposed restriction or policy aimed at limiting or obstructing the free flow of goods and services in international trade. These barriers can take various forms, such as tariffs, quotas, embargoes, subsidies, import licenses, and regulations.
Tariffs are taxes imposed on imported goods, making them more expensive and less competitive in the domestic market. Quotas restrict the amount of certain goods that can be imported, thereby limiting competition for domestic producers. Embargoes completely ban the import or export of certain goods to or from specific countries due to political or economic reasons.
Subsidies are financial grants or incentives provided by governments to domestic producers, giving them a competitive advantage over foreign producers. Import licenses are permits required by governments for importing certain goods, which can be costly and time-consuming to obtain. Regulations refer to technical, health, or safety standards that foreign producers must meet, which may be difficult or expensive to comply with.
Trade barriers can serve various purposes, such as protecting domestic industries, ensuring national security, maintaining health and safety standards, or safeguarding employment. However, they can also hinder economic growth, restrict consumer choice, and increase costs for businesses and consumers.
International trade agreements, such as the World Trade Organization (WTO), aim to reduce or eliminate trade barriers through negotiations and dispute settlement mechanisms. The objectives are to promote fair and open trade practices, encourage economic development, and enhance global cooperation in trade.
Common Misspellings for TRADE BARRIER
- rrade barrier
- frade barrier
- grade barrier
- yrade barrier
- 6rade barrier
- 5rade barrier
- teade barrier
- tdade barrier
- tfade barrier
- ttade barrier
- t5ade barrier
- t4ade barrier
- trzde barrier
- trsde barrier
- trwde barrier
- trqde barrier
- trase barrier
- traxe barrier
- trace barrier
Etymology of TRADE BARRIER
The etymology of the term "trade barrier" can be understood by breaking it down into its components: "trade" and "barrier".
The word "trade" comes from Middle English "trade" or "traden", which was derived from Old English "tradian" meaning "to tread", "to travel", or "to go". It can be traced back to the Proto-Germanic word "tradōną", meaning "to deliver" or "to hand over".
The term "barrier" originated from the French word "barrière", which came from the Old French word "barriere" or "barrere". This word referred to a "railing", "barrier", or "enclosure". It ultimately derived from the earlier Vulgar Latin word "barra" meaning "bar" or "beam".
Similar spelling words for TRADE BARRIER
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