Trade Barriers : International Trade Essay example

1688 Words Jul 27th, 2015 null Page
Trade Barriers As international trade rises and countries around the world attempt to experience economic growth, each country faces the dilemma of balancing the interests of their domestic producers, local consumers, and the well-being of their international trade agreements that support the world’s desire for global trade efficiency (Carbaugh, 2015). Trade barriers represent the most significant component of the balance between free-trade, which encourages foreign competition and lower prices, and a country’s ability to self-sustain and promote national industry growth (Carbaugh, 2015). Therefore, each country must apply their trade barriers effectively in an effort to stabilize the benefits/downsides of increased competition and the protection and success of domestic producers. For example, nations utilize tariffs (taxes) on products being imported into the country for the purpose of generating revenue and creating protection from overseas rivals (Carbaugh, 2015). Although today’s international trade market is experiencing a decrease in tariffs, especially in developed countries, Magee (2011) postulates that tariffs should be higher based on national interests and outlines six possible reasons why these trade barriers are low and continuing to decrease. In the subsequent paragraphs, Magee’s (2011) six explanations are examined and compared against current international trade realities while paying special attention to the rise in non-tariff barriers and their significant…

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