Non Tariff Barriers

Question 1

Voluntary export restraints

Answer 1

When two countries make an agreement to limit the volume of exports to one another over a period of time - a quota

Question 2

Embargo

Answer 2

Complete ban on trade with a particular country

Question 3

Excessive admin burdens (red tape):

Answer 3

• Excessive admin increases the cost of trading, hence discourages imports. Makes it difficult to trade with countries imposing red tape, harmful for developing nations unable to access these markets
• Basically is excessive rule and regulation following, which results in delay and inefficiency

Question 4

Impact of protectionist polices on consumers, producers, gov, QoL, equality:

Answer 4

• Distort market = loss of AE = reduce consumer welfare due to less competition
• Extra cost on exporters = lower output and damage economy
• Tariffs regressive
• Tax revenue
• Retaliation
• Could lead to government failure