Answer:
The answer is below
Step-by-step explanation:
First we have that free trade refers to the movement of goods, services, capital and knowledge from one place to another. But in reality, free trade does not exist since there are many tariffs and non-tariff barriers.
However,
- Tariff barriers are taxes imposed on imports into a country according to quantity or quantity. Tariff barriers increase the price of imports in the country, which affects the demand for goods and services. Countries agree to lower these tariff barriers, which make trade reasonable for countries that sign agreements.
- Non-tariff barriers are barriers that do not directly affect import prices. It does not impose a tax directly on imports. It tries to reduce imports by using barriers other than taxes.
Therefore countries try to protect their domestic industries using various tariff and non-tariff barriers. The amount of the barriers cannot be precisely decided, since the barriers are not only to protect national industries, but some barriers are imposed to avoid the economic and political monopoly of a foreign country in the national country.
Government actions:
The government applies various health and safety regulations to domestic and foreign products, since consumers in the country must be protected against any impurities. Still, these restrictions are also more than required, leading to protectionism.
The government uses various tariff and non-tariff barriers not only to protect national industries but also for various social, economic, and political reasons.
Therefore, it is difficult to establish tariff and non-tariff barriers in a country accurately.
