What affects International trade?

Which things affect international trade


Exchange rate

Tariff barriers


Impact of Quotas on international trade

Quota limits the number of imported goods entering the country

For example

The government declares that only 10,000 bars of chocolate can be imported from a foreign country

Quota discourages international trade


Impact of Exchange rates on international trade

An appreciation in a country’s exchange rate causes the price of imports to decrease and the price of exports to increase

Imports increase

Exports decrease


Impact of Tariff barriers on international trade

Tariff is a tax imposed by the government on the goods imported from a foreign country

Eg. Buyer has to pay $3 to the government for every bar of chocolate bought from a foreign country

Tariff barriers discourage international trade


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