Question

(HELP PLS)
In complete sentence format, explain (a) two of the three types of trade barriers, (b) the reasons why countries sometimes establish trade barriers, and (c) the effects trade barriers sometimes have on the economy.

Answer 1

(a) tariffs are a tax on imports. quotas are a restriction on the number of units that are allowed to be imported

(b) countries usually impose trade barriers to protect domestic producers (often argued that we are protecting jobs!)

(c) barriers usually decrease the volume of trade, increase prices, and generate deadweight loss