Featured
- Get link
- Other Apps
Disadvantages of Trade Barriers
Disadvantages
1. World Trade - Export will also stop. If export is affected , foreign currency will also decrease and export generate employment opportunities . If restricting import , export of our country will also decrease.
2. Effect on Consumer Welfare - Putting barriers will affect production , when putting restriction , domestic producers will become inefficient and lethargic and quality will not improve . Charges of product will be higher . Before 1991 , India was all about domestic producer due to which consumer will deprive from good quality product.
3. Corruption and Red tapism - It will increase corruption , bribe to hold commodity and get license by bribing . Tariff barrier is declining and non tariff barrier is rising .
4. Competition in Market Decrease - It will affect consumer and economic growth of country
- Get link
- Other Apps
Comments
Post a Comment