What are trade barriers?

Trade barriers refer to policies or regulations that limit or restrict international trade between countries. These barriers can take various forms, such as tariffs, quotas, import licenses, and stricter regulations on the importation of goods and services. By imposing these barriers, governments aim to protect their domestic industries from foreign competition, ensuring that local businesses can thrive and maintain market share within their own countries.

In this context, other choices do not accurately capture the essence of trade barriers. Strategies that enhance domestic production may include support mechanisms like subsidies or investment in infrastructure, but they do not necessarily involve restrictions on international trade. Tax incentives for foreign companies could encourage foreign investment rather than inhibit trade, and measures to promote exports focus on encouraging international sales rather than restricting imports. Therefore, the defining characteristic of trade barriers is their role in regulating and limiting cross-border trading activities.