Question

What is the general trend of trade barriers over recent decades: higher, lower, or about the same?

Short answer

In recent decades, trade barriers have been decreased in general.

Step-by-step solution

What is a trade barrier?

Trade barriers refer to the restrictions on trade imposed by a government to protect the consumers and producers in from foreign competition. tariffs, quotas, standards, etc are different trade barriers.

Explanation

Lowering trade and FDI restrictions on final goods can help the liberalized industry compete more effectively (s). This can assist businesses in achieving economies of scale, increasing efficiency, absorbing foreign technology, and innovating.

In the recent period, with trade negotiations and international treaties, there has been a decrease in trade barriers. The existing trade barriers are mostly limited to agricultural products and labor-intensive industries. The average levels of tariffs imposed by advanced countries have declined from 40% in 1946 to 5% in 1990.