Question

Distinguish between:
Tariff and Non-tariff Barriers
Bilateral and Multilateral Trade

Hint:

Always support definitions with examples or government initiatives to strengthen economic answers.

Answer 1

1. Trade Impediments: Tariffs and Non-Tariffs

• Tariffs: Taxes levied on imported goods, increasing their price and enhancing the competitiveness of domestic products.
• Non-Tariff Barriers: Import restrictions beyond taxes, including quotas, licenses, standards, and regulations, designed to protect local industries.

2. Trade Scope: Bilateral and Multilateral

• Bilateral Trade: Exchange of goods and services exclusively between two nations.
• Multilateral Trade: Trade involving more than two countries, frequently governed by international accords such as those of the WTO.