Understanding  Restrictions

Restrictions refer to limitations or barriers placed on an activity, commodity or process. In international trade, restrictions can be in the form of trade barriers, import/export restrictions, and tariffs. Restrictions serve to limit the flow of goods and services from one country to another.

Trade Restrictions

Trade restrictions are limitations that are placed on international trade by a government in the form of protectionist policies. They could include tariffs, quotas, embargoes, and other similar measures. The primary aim of trade restrictions is to protect domestic industries from foreign competition.

Import Restrictions

Import restrictions refer to the limitations imposed by a nation that restricts or prohibits imports of specific products or services. These restrictions are often imposed to protect domestic industries from foreign competition or for reasons related to national security.

Export Restrictions

Export restrictions refer to the limitations placed by a government on the export of specific products or services. The primary goal of these restrictions is to ensure that vital resources are not depleted by being exported.

Trade Barriers

Trade barriers refer to specific measures put in place by a government to make it difficult for foreign producers to sell their products and services locally. These measures include various forms of tariffs, quotas, and regulatory measures.


Tariffs are taxes imposed on imported goods and services. They serve as a significant source of revenue for governments while also serving as an effective tool for regulating imports.

Popular Questions About Restrictions

What Are the Different Types of Trade Restrictions?

Trade restrictions can take many forms, including tariffs, quotas, embargoes, subsidies, and regulations.

Why Do Governments Impose Import Restrictions?

Governments might impose import restrictions as a means of protecting local industries from foreign competition or as part of national security concerns.

What Are Export Controls?

Export controls refer to regulations that restrict the exportation of certain goods and technologies from one country to another.

What Are the Benefits of Trade Restrictions?

Trade restrictions can help protect local industries from foreign competition, preserve a country’s resources, and serve as a source of revenue for governments.

What Are the Disadvantages of Trade Restrictions?

Trade restrictions can stifle economic growth, increase the cost of goods and services, and ultimately harm consumers.

How Do Tariffs Affect International Trade?

Tariffs raise the cost of imported goods, making them less attractive to domestic consumers. This can lead to a decrease in international trade and potentially hurt businesses that depend on imports.

What Is the Impact of Export Restrictions on International Trade?

Export restrictions can limit the availability of goods in foreign markets, leading to higher prices for consumers. They can also limit a country’s access to goods that it might need to import in order to support its own economy.


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  • Bown, C. P., & Crowley, M. A. (2020). Import protection amid a pandemic: The choices behind India's changing policies.
  • World Trade Organization. (2020). Trade Policy Review: Bolivia 2020.
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