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(1.5) Practice: Essay - Factors of Production

Saylor Academy

Created on January 26, 2026

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Transcript

Trade Barriers

Essay Practice Activity

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  • Evaluate the feasibility of doing business in a specific country.
  • Describe methods for business entry into the global marketplace.

LearningOutcomes

By completing this activity, you will:

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Essay Introduction

In this section, you learned about competing in the global marketplace and the various barriers to trade. Write a paragraph describing several tariff and nontariff barriers to trade. After submitting your response, check how many points from the response guide you included.

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Essay prompt

Please answer the essay question below

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Essay Response Guide

Take a moment to review your response using the criteria below. Assess how many of these points you addressed in your response. Once you’re ready to move forward, click “Next” button below to continue.

Nontariff Barriers (NTBs)

Tariff Barriers

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Tariff Barriers

These are direct taxes imposed on imported goods:

  • Import Duties – Taxes on foreign goods to make them more expensive and protect domestic producers.
  • Export Tariffs – Taxes on goods leaving a country (less common, but used in specific sectors like natural resources).
  • Customs Fees – Additional charges at the border that increase the cost of traded goods

Nontariff Barriers (NTBs)

These restrict trade without using taxes: Quotas – Limits on the quantity of goods that can be imported or exported. Import Licensing – Special permissions required before importing certain goods. Subsidies – Government financial support to domestic industries, making their goods artificially cheaper than imports. Technical Standards – Health, safety, or environmental regulations that imports must meet (can be trade-restrictive if overly strict). Voluntary Export Restraints (VERs) – Agreements where exporting countries limit how much they send to a country. Embargoes or Sanctions – Complete bans on trade with certain nations or products for political or security reasons.