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Trade Barriers and Tariffs
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Tariff
A tax imposed on imported goods and services, designed to raise the cost of imported products to protect domestic producers.
Ad Valorem Tariff
A tariff based on a percentage of the value of the imported goods.
Specific Tariff
A fixed fee charged per unit of imported goods.
Compound Tariff
A combination of an ad valorem tariff and a specific tariff, charged on the same imported goods.
Non-Tariff Barrier (NTB)
Measures other than tariffs that restrict imports, such as quotas, embargoes, and standards.
Import Quota
A restriction on the quantity or value of certain goods that can be imported into a country.
Voluntary Export Restraint (VER)
A self-imposed limitation by an exporting country on the volume of their exports to another country.
Subsidy
A government payment to a domestic producer to lower their costs and make them more competitive against foreign imports.
Embargo
A ban on trade with a particular country for political or economic reasons.
Standards
Regulations that goods must meet to be admitted into a country, often concerning health, safety, or environmental protection.
Anti-dumping Duty
Tariffs imposed by a country on foreign imports that it believes are priced below fair market value.
Countervailing Duties
Tariffs imposed to counter the negative effects of subsidies given by foreign governments to their exporters.
Sanctions
Restrictions or penalties applied by one country onto another to achieve foreign policy or economic objectives.
Local Content Requirement
A policy requiring that a certain percentage of a product must be made from domestically sourced components.
Currency Manipulation
A deliberate attempt by a country to influence the exchange rate of its currency to gain an unfair competitive advantage in trade.
Trade-Related Investment Measures (TRIMs)
Regulations used by countries to control foreign investment and influence the balance of trade.
Import Licensing
A procedure requiring governmental approval before a product can be imported, often used to control the volume of imports.
Customs and Administrative Entry Procedures
Complex customs procedures required for importing goods, which can act as barriers due to delays and added costs.
Protectionism
The economic policy of restraining trade between nations, through methods such as tariffs on imported goods and restrictive quotas.
Global Quota
A limit on the total amount of certain goods that may be imported into a country from all foreign sources.
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