what is a trade barrier? why do we need a trade barrier? why did government of india removed trade barriers to a large extent on foreign trade and foreign investment
please help me friends

Respuesta :

Answer:

Trade barriers are government policies which restrict international trade. Both tariffs and subsidies raise the price of foreign goods relative to domestic goods, which reduces imports. Barriers to trade are often called “protection” because their stated purpose is to shield or advance particular industries or segments of an economy. The Indian government removed barriers on foreign trade and foreign investment because it felt that competition would improve the performance of producers within the country since they would have to improve their quality.

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