Non Tariff Trade Barriers And The New Protectionism Ppt To Pdf

non tariff trade barriers and the new protectionism ppt to pdf

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Trade barriers are government-induced restrictions on international trade, which generally decrease overall economic efficiency.

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Non-Tariff Barriers

The debates can get quite detailed and confusing. But there is also a big question of principle: is free trade a good thing at all? One view says that we should make it as easy as possible for goods and services to move between countries. This approach is based on the argument that more trade makes us wealthier and is therefore a good thing. It is known as free trade. Another approach says that we should restrict trade. We might do this to protect certain jobs.

Non-tariff barriers to trade NTBs ; also called non-tariff measures , NTMs are trade barriers that restrict imports or exports of goods or services through mechanisms other than the simple imposition of tariffs. The Southern African Development Community SADC defines a non-tariff barrier as " any obstacle to international trade that is not an import or export duty. They may take the form of import quotas , subsidies, customs delays, technical barriers, or other systems preventing or impeding trade ". One of the reasons why industrialized countries have moved from tariffs to NTBs is the fact that developed countries have sources of income other than tariffs. Historically, in the formation of nation-states , governments had to get funding.

Nontariff Barrier

Trade protectionism is a policy that protects domestic industries from unfair competition from foreign ones. The four primary tools are tariffs, subsidies, quotas, and currency manipulation. Protectionism is a politically motivated defensive measure. In the short run, it works. But it is very destructive in the long term. That immediately raises the price of imported goods.

It is a direct quantitative restriction on the amount of a commodity allowed to be imported or exported. So we have import quotas and export quotas. When adjustment thru any shift in DX or Sx occurs in the domestic price with an import quota, import quota completely replaces the market mechanism. With an import tariff, an increase in demand will leave the domestic price and domestic production unchanged but will result in higher consumption and imports than with an equivalent import quota. When adjustment to any shift in DX or Sx occurs in the quantity of imports with a tariff, an import tariff alters market mechanism as an import tariff does. If the government does not auction off these licenses in a competitive market, firms that receive them will reap monopoly profits.

ch09_nontariff - Free download as Powerpoint Presentation .ppt), PDF File .pdf)​, Text File Nontariff Trade Barriers and New Other Nontariff Barriers and the New Protectionism The Political Economy of Protectionism.


Protectionism , policy of protecting domestic industries against foreign competition by means of tariffs , subsidies , import quotas , or other restrictions or handicaps placed on the imports of foreign competitors. Protectionist policies have been implemented by many countries despite the fact that virtually all mainstream economists agree that the world economy generally benefits from free trade. Government-levied tariffs are the chief protectionist measures.

Import Quotas. Other Nontariff Barriers and the New Protectionism. Persistent dumping is the continuous tendency of a domestic monopolist to maximize total profits by selling the commodity at a higher price in the domestic market. Persistent dumping 2.

Non-tariff barriers to trade

Trade: Free Trade Vs Protectionism

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As the name suggests, NTBs include trade barriers other than tariffs, such as quotas, voluntary export restraints (VERs), government regulations, international​.