b) Types

b) types of restrictions on trade: tariffs, quotas, subsidies to domestic producers, non-tariff barriers

types of protectionism

• tariffs = a tax on imports paid by the importing firm

• quota = a limit on the volume of imports

• subsidies to domestic producers

• non-tariff barriers

tariffs…

• increase production costs for the importing firm

quotas…

• decrease supply

subsidies to donestic producers…

• decrease production costs

non-tariff barriers include…

• product labelling

• product specifications

• environment regulations

• health and safety regulations