Political Barriers to International Trade
- Created by: tanja soulsby
- Created on: 27-03-17 15:00
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- Political Changes for International Trade
- Tariffs (import taxes)
- Discourage international trade
- Removing or reducing tariffs between countries provides opportunities for business
- Makes international trade easier and cheaper
- World Trade Organisation set up in 1995 to encourage international trade
- Proportion of imports worldwide that are tariff free has risen significantly
- Quotas
- Trade restrictions set by governments putting limits on imports and exports
- Countries use import quotas to try and protect their own economies and jobs
- Called protectionist policy
- Sometimes 2+ countries sign a free trade agreement which removes/reduces the number of quotas between them
- Encourages international trade (e.g. EU and Chile - 2002)
- Trade Embargoes
- Ban trade with a particular country (e.g. USA and Cuba)
- Sanctions
- Imposed for various reasons
- E.g. USA & UK put sanctions on Syria as they didn't agree with the government's violent repressive regime
- Imposed for various reasons
- Tariffs (import taxes)
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