Trade Barriers
Obstacles to international trade: tariffs, quotas, regulations, transport costs.
Formula
Tariff-inclusive price = Import price + Tariff (%)
Real World
When the US imposed 25% tariffs on steel imports in 2018, UK steel producers like British Steel briefly gained a price advantage in the domestic market, but manufacturers relying on cheap imported steel faced higher input costs.
Exam Focus
In 'evaluate' questions on trade barriers, always consider who gains (domestic producers) and who loses (consumers, downstream manufacturers) for a balanced argument.
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