Question

What is importance of trade barriers for govt. ??​

Answer 1

Answer:

Tax on imports is a vital trade barrier. Government can use the trade barriers in the following ways :

(a) Increase or decrease of foreign trade of the country.

(b) With the help of trade barriers government can decide what kinds of goods and how much of each, should be traded in the country.

Answer 2

Trade barriers prevent foreign producers from unfairly gaining a competitive advantage in the domestic economy and help to level the playing field. If it will be used fairly by the governments they could be great tools for international trade and control the trade deficit of a country.

Hope it helps ☺