TOOLS OR INSTRUMENTS OF TRADE RESTRICTION

TOOLS OR INSTRUMENTS OF TRADE RESTRICTION

Tools or instruments normally used for international trade restriction are the following:

  • Import duties or tariffs: This is a tax imposed on imported goods to reduce the amount of trade.
  • Foreign exchange control: Trade can be controlled by reducing the foreign exchange available for trade transactions.
  • Devaluation: By lowering the value of a country’s currency vis-a-vis others, importation becomes costly while export becomes cheaper.
  • Embargo: This is the prohibition or outright ban placed on some imported goods
  • Import monopoly: This refers to a situation in which the government of a country takes over the importation of certain goods which are only essential to the country.
  • Import quota: Import quota restricts imports by imposing a limit on the quantity of goods that can be imported into a particular country.
  • Preferential duties: In order to either encourage or discourage the importation of certain goods from certain countries discriminate duties are charged on these
    goods.
  • Excise duties reduction: This method helps to reduce the prices of locally made goods so as to enable people to patronize them instead of foreign made goods.
  • Import license: Import license is a permit that allows an importer to bring a certain quantity of foreign goods into a country and allows him to purchase the foreign currency required to pay for them.
  1. EFFICIENCY OF LABOUR.price equilibrium
  2. scale of preference
  3. concept of economics
  4. economic tools for nation building
  5. budgeting
  6. factors affecting the expansion of industries
  7. mineral resources and the mining industries
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