Why trade barriers are imposed by countries and how
Trade barriers refers to certain restrictions which are imposed by the government for the free exchange or trading of goods and services with the foreign countries.
Reasons for Indian government to impose trade barriers include:
1.To safeguard the domestic producers from foreign competition.It was clear that the domestic producers have to face a tough competition with the entry of foreign goods.
2.There was a fear that the economically strong countries would try to establish economic colonialism India through free trade.
3.Free trade economy would be a threat to society and culture as entry of foreign goods and items would make people more westernised in outlook and appearance.
4.The Indian government wanted to establish a different standard of economy which would be socialistic and look for welfare not a capitalist economy looking for profit and business.
Trade barriers are imposed through taxes, excise duties,custom duties,tax,etc. on commodities
Reasons for Indian government to impose trade barriers include:
1.To safeguard the domestic producers from foreign competition.It was clear that the domestic producers have to face a tough competition with the entry of foreign goods.
2.There was a fear that the economically strong countries would try to establish economic colonialism India through free trade.
3.Free trade economy would be a threat to society and culture as entry of foreign goods and items would make people more westernised in outlook and appearance.
4.The Indian government wanted to establish a different standard of economy which would be socialistic and look for welfare not a capitalist economy looking for profit and business.
Trade barriers are imposed through taxes, excise duties,custom duties,tax,etc. on commodities