Question

What are all those threats to ‘Open Trading System’?

Answer 1

Trading system is a group of parameters , which combine and create buy and sell signals for an economy.

The threats to an open trading system are:

1) Protectionist measures

Competition from products of other countries in the home country lead to such measures.

2) Regionalism

Formation of custom unions and free trade agreements are examples of such challenges.

3) Non tariff barriers

4) Sector specific barriers

To protect agriculture in the home country, products from other economies are discouraged.

Answer 2

There are multiple threats to the open trading system.

Some of them can be enlisted as protectionist measures, competition produced by other countries, regionalism and formation of custom unions and free trade organizations, non-tariff and sector-specific barriers.

For instance, to protect agriculture from a native country, other countries have to be discouraged in order to enhance the quality of the native trading system.