One of the most important features of International trading environment is the existence of trade barriers, The main objective of imposing trade barriers are to protect domestic industries from foreign competition, to promote indigenous research and development, to consence foreign exchange resources of the country, to make balance of position favorable, to curt over-consumption, to mobilize revenue for the govt. and to discriminate against certain countries.
There are basically two types of trade barriers:-
- Tariff:- Tariffs in International trade refer to the duties/ taxes imposed on internationally traded goods when they cross the national borders.
- Non-Tariff Barriers:- NTB’s have grown considerably where the countries describe thus as new protectionist measures the export growth of many countries has been. Seriously affected by NTB’s.