In order to prevent domination by foreign goods, to safeguard in domestic

industries and to attain micro economics stability, government may impose various
types of restriction to control the inflow of foreign goods in the domestic market.
Such majors are called trade protectionism. It can be classified into two following
types:
Tariff Barrier
Tariff barriers refer to imposing a high rate of import tax in the foreign goods. This
increased the price of foreign goods and they become more expensive compared to
domestic product.
Non-Tariff Barrier
Besides imposing a tariff,government may adopt another mechanism like a
quota, exchange rate policy, export subsidies to a domestic product, lengthy
documentation process,etc. to discourage inflow of foreign goods and to
promote domestic products. These mechanism are called non-tariff barrier.