... off it neither protected (see diagram below). In turn, if one country was to put up barriers where the other country has free trade, it could in turn cause retaliation from the other country, which could result in trade wars. Overall, this will bring world trade down. The first example of a barrier is a tariff, which can be defined as "a tax imposed on the import or export of a good or service that crosses a national boundary"2 and this comes in different forms, with the first being a specific tariff that is imposed as a fixed amount per unit of import or export. Specific tariffs depend only on the number of items or the volume of a product and are easy to collect. The downside to these tariffs is that "they do not reflect the value of imports or export"3. Another type of tariff is ...

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