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Trade barriers

Trade barriers are measures authorities introduce that prevent or restrict overseas trade and investments.

Trade barriers are measures that governments or public authorities introduce that prevent or restrict overseas trade and investment. These measures need not necessarily take the form of legislation or a specific decision. They may also take the form of current practise.

As a result of these measures, domestic companies receive a competitive advantage relative to their foreign counterparts. It is accepted that in many cases, products are liable to customs duties when imported into a market, and that imported products ought to be accompanied by the correct documentation.

In some cases, however, customs duties may be unreasonably high, or customs clearance may take an unreasonably long time.

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Fundamentals of Economics

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