Which is an example of non-tariff barriers to trade?

Study for the Arizona State University MGT302 International Business Exam. Prepare with flashcards and multiple choice questions, featuring hints and explanations for each. Get exam-ready with ease!

Non-tariff barriers to trade refer to restrictive regulations and policies other than tariffs that countries use to control the amount of trade across their borders. Quality standards are a prime example of such barriers. They are often imposed to ensure that imported products meet certain safety, health, or environmental requirements. These standards can effectively limit the number and type of goods that can enter a market, thereby influencing international trade without the use of direct taxes or duties.

In contrast, import taxes and customs duties are classified as tariff barriers because they directly impose a financial charge on imported goods. These measures aim to generate revenue for the government and protect domestic industries by making foreign products more expensive. Therefore, while they also serve to regulate trade, they fall under a different category compared to quality standards which focus on product compliance rather than imposing a cost. Understanding the nature and purpose of non-tariff barriers is crucial for analyzing trade policies and the complexities of international business.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy