Barriers to International Trade
                     Barriers to International Trade

Although trade barriers exist in the 
What are domestic market as well, when the term 
trade barrier is used, it mostly applies to 
Trade tariffs induced by the state upon international trade; however, non-tariff 
Barriers? trade barriers also exist. A tariff is a type of tax that is imposed on the import of goods 
from another nation. Unsurprisingly, it is 
detrimental to the economy. As 
international trade is essential to 
strengthen a country’s economy, heavily 
taxing it can result in plummeting GDP. 
Moreover, since fewer goods are being 
traded, a price hike is also observed. If two 
nations place trade barriers on each other, 
it can result in trade wars. Interestingly, 
there are international trade barriers that 
do not involve the government.
Our world is divided into 195 countries, and 
1. each country has a unique culture that was shaped by thousands of years of lifestyle 
decisions. Cultures are nothing short of 
Sociocultural evolution in terms of how society functions. 
Sadly, differences among societies didn’t 
Barriers cause humans to come together, but they made them resort to violence. Hence, 
creating sociocultural barriers. Thankfully, 
in present times, only lifestyle, preferences, 
and language are a part of socio-cultural 
barriers; however, it does apply to 
international trade. Therefore, multinational 
corporations must adapt to the lifestyle and 
culture of the nation in which they wish to 
conduct business. For instance, McDonald’s 
has bacon as an option for every burger in 
the United States, but carefully does not sell 
pork in Islamic countries like Egypt or 
Dubai, as pork is forbidden in Islam. 
It does not matter what business an individual 
2. Economic or company is trying to establish, if the 
average capital within a region is equal to or 
Barriers lower than the price of the product, then, that business cannot thrive, and this is the 
fundamental of economic barriers. These are 
the type of barriers that directly affect the 
economy or are caused due to the economic 
situation of a nation. The average income of 
the population, along with infrastructure, also 
places a non-tariff barrier on international 
trade. Take luxury car brand Rolls Royce for 
example, it faces an economic barrier in India, 
even with a population of 1.3 billion, it only 
sold 35 units in 2019. Meanwhile in the United 
States with a significantly lower population, 
5,000 units were sold in the same year.
These are the types of barriers that were 
3. Political mentioned in the introduction briefly, i.e., tariffs. These types of trade barriers are 
placed for safety concerns, restrictions may 
and Legal be placed on a product if it is considered dangerous in the importing country. 
Barriers Moreover, as technology evolves rapidly in developed nations, specific policies are also 
introduced in developing countries based on 
the importing product, once again for safety 
purposes. Sometimes, a newly elected 
government may even place tariffs on 
specific companies that the former 
government helped establish within the 
nation. 
Interested in learning more? 
Visit here :
Economics 
Dictionary
For more information visit our 
website: 
https://economics-dictionary.co
m/