Share This Article:

Economic Definition of trade barriers. Defined.

Offline Version: PDF

Term trade barriers Definition: Restrictions, invariably by government, that prevent free trade among countries. The more popular trade restrictions are tariffs, import quotas, and assorted nontariff barriers. An occasional embargo will be even thrown into this mix. The primary use of trade barriers is to restrict imports from entering in country. By restring imports, domestic producers of the restricted goods are protected from competition and are even subsidized through higher prices. Consumers, though, get the short end of this stick with higher prices and a limited choice of goods. In that producers tend to have more political clout than consumers, it's pretty obvious why trade barriers are a "natural" state of affairs.

 

« trade barrier | trade deficit »

Permalink: http://glossary.econguru.com/economic-term/trade+barriers

Alphabetical Reference to Over 2,000 Economic Terms