Identify barriers to trade and the reasons countries impose them.?
Answer:
tariffs and quotas
countries impose them to make money and encourage domestic countries known as infant industries
You need to do your own homework, but I will help get you started. We in the USA didn't want to do business with China because they wouldn't honor our patents, which means they could steal our technology and under cut our companies. We stopped doing business in countries that would not support us and continued to do business with terrorist countries. There is no sound reason for us to enrich countries that want to harm us. The rest is up to you.
tariffs,
quotas,
subsidies to domestic producers,
bureaucratic burden in getting into market (licencing, permits, etc.)
why? B/c they want to protect local producers (& do not care that domestic consumers pay the price of it)
Barriers to trade can be an import tax (tariffs) or a government enforced exchange rate as well as subsidies. Patents have really no correlation with trade barriers and the answer listed before me was purely a opinion based on a political view. If this is your homework don't write an opinion. Countries place trade barriers, as the other user said, in order to foster homegrown industries believing that in developing home industries, it would make the individual country stronger. An important thing to note is that free trade is disadvantageous to manufacturing and manual industries in industrialized and rich countries, but helps the service sector. On the other hand, free trade allows poorer nations to develop their industrial sector and get richer. You can look most of this stuff up in wikipedia.
Well there are import tariffs and export tariffs. Import tariffs are very important! It decreases the importing country from being dependent on another country & increases protection for certain industries in the country. Export tariffs are prohibited by the US Constitution but are often applied by developing countries on there traditional exports in order to get better prices and raise revenues.
Then there are Quotas which are a direct quantitative (numerical amount) restriction on the amount of a commodity allowed to be imported or exported in a nation. Import quotas protect a domestic industry or agriculture and for balance-of-payments reasons.
A difference between a quota and a tariff is that the quota involves the distribution of import licenses.
Then there are Nontariff Barriers (NTB) such as Voluntary export restraints which refer to a case where an importing country induces another nation to reduce its exports of a commodity "voluntarily" under the threat of higher all around trade trade restrictions.
Then there are such NTB like safety regulations, health regulations, labeling requirements, technical and administrative regulations. There are International Cartels which is an organization of suppliers of a commodity located in different nations that agree to restrict output and exports of a commodity with the aim of maximizing or increasing the total profits of the organization. For example the Diamond market (the movie Blood Diamond portrays a version of this) or OPEC.
Antidumping laws...which dumping refers to the export of a commodity at below cost or at a lower price than the commodity is sold domestically. There is predatory dumping, sporadic dumping and persistent dumping.
Persistent dumping creates higher profits to domestic producers. Predatory dumping drives foreign producers out of business, after which prices are raised to maximize profits. And then Sporadic dumping which is done to unload a temporary or unforeseen surplus of a commodity without having to reduce domestic prices. Antidumping duties are often used to offset price differentials.
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