Are tariffs the only type of obstacle to international trade? If not, name some others.
pohnpei397 | Certified Educator
There are other kinds of barriers to international trade. The two most important are:
- Quotas. Sometimes, a government will simply set a quota on how much of a certain product can be brought into their country from abroad.
- Regulatory trade barriers. These can be thought of as "stealth" trade barriers. They are not officially trade barriers because they are ostensibly set up for reasons other than inhibiting trade. These kinds of barriers are supposedly set up for reasons like health or environmental concerns but are actually meant to reduce trade. An example of this might be US restrictions on Mexican trucks coming into the US. The US has banned this supposedly for safety reasons but many people believe the restrictions were based on a desire to inhibit trade and protect American truckers. Similarly, South Korea has made it very hard for American beef to enter their country. This is supposedly because of "mad cow disease" but many feel that it is just another form of protectionism.