Tools or instruments of trade restrictions

[Mastergp]

Tools or instrument normally used for international trade restriction include the following:

Import duties or tariffs:
This is a tax imposed on imported goods to reduce the amount of trade.

Foreign exchange control:
Trade can be controlled by reducing the foreign example available for trade transactions.

Devaluation:
By lowering the value of country's currency others importation becomes costly while export becomes cheaper

Import monopoly:
This refers to situation in which the government of a country takes over the importation of certain goods which are only essential to the country.

Preferential duties:
In order to either encourage or discourage the importation of certain goods from certain countries discriminate duties are charged on these goods.

Excise duties reduction:
This method helps to reduce the prices of locally made good so as to enable people to patronize them instead of foreign made goods.

Import license:
Import license is a permit that allows an importer to bring a certain quantity of foreign goods into a country and allows him to purchase the foreign currency require to pay for them.