Some of the most common forms of trade barriers are tariffs, duties, subsidies, embargoes and quotas.

What Is a Quota? A quota is a government-imposed trade restriction that limits the number or monetary value of goods that a country can import or export during a particular period. Countries use quotas in international trade to help regulate the volume of trade between them and other countries.

Trade policies come in many varieties. Generally they consist of either taxes or subsidies, quantitative restrictions or encouragements, on either imported or exported goods, services and assets.

Standard international trade models universally consider maximizing the availability of inexpensive goods as the objective of international trade. They then go on to show that tariffs and other impediments to trade cause a loss of economic efficiency.

This course provides the fundamentals for starting an international trading business. Topics include key trade organizations, marketing and sales channels, U.S. Customs rules, freight, financing, and insurance considerations.

First—people respond to incentives. Second—each transaction has an equal give and take.

10 Principles of Fair Trade from WFTO

• 1 – Opportunities for Disadvantaged Producers.
• 2 – Transparency and Accountability.
• 3 – Fair Trade Principles.
• 4 – Fair Payment.
• 5 – Ensuring no Child Labour and Forced Labour.
• 6 – Commitment to Non-Discrimination, Gender Equity and Women’s Economic Empowerment, and Freedom of Association.

• Mercantilism. Developed in the sixteenth century, mercantilism.
• Absolute Advantage. In 1776, Adam Smith questioned the leading mercantile theory of the time in The Wealth of Nations.
• Comparative Advantage.
• Heckscher-Ohlin Theory (Factor Proportions Theory)
• Leontief Paradox.

Current trends are towards the increasing foreign trade and interdependence of firms, markets and countries. ADVERTISEMENTS: Intense competition among countries, industries, and firms on a global level is a recent development owed to the confluence of several major trends.