Barriers to International Trade Countries often use various government regulations to manipulate the amount of goods and services imported from other countries. This activity is important because it will help you to understand the effects of trade protectionism on the overall international trading atmosphere. The goal of this exercise is to challenge your knowledge of the different types of international trade barriers. Select the barrier to international trade that each statement best describes. 1. A complete ban on trade with another country or a prohibition on trading specific types of products, services, or technology to another country 2. A customs duty or tax levied mainly on imports 3. The United States only allows a certain amount of aluminum sheet to come into the country from China 4. The United States recently raised taxes on all imported solar panels in order to attempt to make U. S.-made solar panels more competitive 5. A limit on the numbers of a product that can be imported 6. The United States does not export any materials to North Korea that may help North Korea bolster its nuclear program.

Please refer to Explanation

Explanation:

1. Embargoes and sanctions

When a trade embargo or sanctions are in play, depending on the strength of the nation or International organisation that imposed it, countries are not allowed to trade with the country that is under an embargo. Sometimes the trade embargo can be on all products and sometimes just specific sectors are targeted. An example is the current United States embargo on Venezuela which targets their oil sector and as such most countries are avoiding buying Venezuelan oil.

2. Tariffs

This is a method of reducing the amount of a certain good imported from outside. Tariffs are usually introduced to protect the domestic producers and supplier in an economy and work by taxing imports or placing a customs duty on them. They are usually imposed when the imports are cheaper than domestic Production.

3. Import Quota

Another way to protect the domestic economy. In this scenario, a country allows the import of a certain good only up to an extent for a period which is usually a year. For instance, the United States in this scenario could say that in 2020 only 500 megatons of Aluminum are allowed into the country from China. After that, no more is allowed until 2021.

4. Tariff.

This is a Tariff and as earlier explained, is meant to protect the domestic producers by taxing imports that are cheaper.

5. Import Quota.

This is clearly an import Quota as earlier described because the country is limiting the amount of a certain good that can come into it.

6. Embargoes and Sanctions.

This is a clear example of an embargo. The United States is limiting the amount of goods exported to North Korea because they are under sanctions and embargoes. The United States and Western nations do not want to export anything to North Korea that could aid it's Nuclear Industry so it is a targeted embargo on their nuclear industry.

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