abhishreshthaa
Abhijeet S
LIMITATIONS OF TRADE BARRIERS:
1. Trade barriers restrict the free movement of goods among the countries. Such situation is harmful to all participating countries.
2. The volume of world trade reduces considerably due to different types of trade barriers.
3. Countries are artificially kept away from each other due to trade barriers.
4. Countries with surplus production are unable to utilize it fully due to trade restrictions. They are unable to export and earn foreign exchange for the import of other goods from other countries.
5. Developing countries and poor countries are not self sufficient. They have to improve many items for their survival. Trade barriers affect poor and developing countries more severely as compared to developed countries.
6. Global integration of countries is adversely affected due to trade barriers. Even cultural exchanges are reduced considerably due to the trade barriers.
7. Production activities in many countries are adversely affected due to trade barriers. Such countries are not in a position to utilize their natural resources fully as they are unable to export their surplus production.
8. The benefits of comparative cost advantage will not be available to different countries due to trade barriers.
9. Global free trade is an ideal situation and beneficial to all countries. This ideal situation is difficult to crate due to trade barriers introduced by different countries.
1. Trade barriers restrict the free movement of goods among the countries. Such situation is harmful to all participating countries.
2. The volume of world trade reduces considerably due to different types of trade barriers.
3. Countries are artificially kept away from each other due to trade barriers.
4. Countries with surplus production are unable to utilize it fully due to trade restrictions. They are unable to export and earn foreign exchange for the import of other goods from other countries.
5. Developing countries and poor countries are not self sufficient. They have to improve many items for their survival. Trade barriers affect poor and developing countries more severely as compared to developed countries.
6. Global integration of countries is adversely affected due to trade barriers. Even cultural exchanges are reduced considerably due to the trade barriers.
7. Production activities in many countries are adversely affected due to trade barriers. Such countries are not in a position to utilize their natural resources fully as they are unable to export their surplus production.
8. The benefits of comparative cost advantage will not be available to different countries due to trade barriers.
9. Global free trade is an ideal situation and beneficial to all countries. This ideal situation is difficult to crate due to trade barriers introduced by different countries.