TARIFF

• Is a tax imposed on imported goods.

• Main form of protection to protect local industries plus acting as a source of governement revenue.

• Impact of such tariff results in higher price of imported goods hoping that local demand will decrease.

• The degree of success of tariff protection strongly depends on the elasticity of demand for imported goods re: higher the elasticity the more effective the use of tariff measure

QUOTA

• Is a limit on the quantity of imports.

• Used to protect local industries as well as for political reason.

• Unlike tariff protection, imposing quota will not affect the price of imported goods hence not going to increase the government revenue.

EMBARGO

• Physical control to ban the imports of certain goods like drugs, pornographic materials,etc.

• Imposed for economic, social and political reasons

EXCHANGE CONTROL

• Use to restrict or control the amount of foreign curriences that can be bought by importers.

• Purpose is to restrict the ability to import.

VOLUNTARY EXPORT RESTRICTION

• By using persuasion to ask another country to place a limit on its exports.

• Example, like country A persuade country B to limits its car exports to relieve the competitive pressure on country A’s domestic car producers