In the context of globalisation, what does the term "barriers of trade" refer to?

The term "barriers of trade" specifically refers to legal restrictions imposed by a country on the exchange of goods and services across its borders. This can include tariffs, quotas, import licenses, and various regulations designed to control the amount and type of goods that can enter or leave a country. Such barriers can significantly impact international trade by making it more expensive or complicated for businesses to operate in foreign markets. By limiting imports, these barriers are often intended to protect domestic industries from foreign competition and preserve local jobs.

While volatile exchange rates can affect trade by influencing the costs of transactions, they are not classified as barriers of trade. Market competition and consumer preferences are important factors in the global market, but they do not pertain directly to the legal restrictions on trade. Hence, the correct understanding of "barriers of trade" is rooted in the legal and regulatory aspects that directly affect the flow of goods and services between countries.