I won't lie- I need help on my homework?

Question

Explain how international trade barriers help and hinder businesses and society. Give examples of good and bad trade policies.

I missed this lecture due to my son being sick and now I'm having trouble understanding what I'm reading. Can anyone help me out with maybe some examples? Thanks.

Answer 1

You have two good answers so far - so I'll add to it for you.

Look at China and it's long standing trade barriers. It has allowed it to flood the West and Far East with cheap products and kept out other countries.

When Hong Kong reverted to China - this opened up trade a lot more.

The EEC (European Economic Community) has no trade barriers (in theory) between EEC countries. Hower some countries get inventive - France for example has declared that some goods can only come in via a very small and remote port and needs some very complex paperwork - all in French!

South Africa had trade barriers against it for a long time.

Answer 2

I think when one country feels anothers goods would hurt sales of their own products then they put on import taxes that make it expensive .
For example , many foreign countries manufacture inexpensive clothing due to wages around a $1 a day so American textile and garment companies could not compete. They had trade barriers for awhile but ultimately, the foreign won out and most American textile companies are gone.
This is actually a very complex topic but most of the reading should be rather intuitive (unless it is a bad author)
Try googling International trade barriers or look it up in Wiki

http://en.wikipedia.org/wiki/Trade_barrier

Answer 3

A trade barrier is like a quota or import tax imposed by a country to keep out foreign goods or make them more expensive. They protect domestic producers from foreign compettition, so its good for them. But its bad for consumers in that country, because they have to pay more for the same goods than they would have to if there were free competition and no trade barriers.

So the best trade policies for the general population of a country is free trade all the way baby. But domestic producers and uniionized labor will want to erect trade barriers to "protect" domestic production: good for them, bad for the consumer.