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International trade International trade develop fast since world war II. So did Vertical specialization. Vertical specialization occurs when a country uses imported intermediate parts to create a good it later exports—that is, the country links sequentially with other countries to produce a final good. vertical specialization has accounted for a large and increasing share of international trade over the last several decades. They also note that because the trends encouraging vertical specialization—lower trade barriers and improvements in transportation and communications technologies—are likely to continue, this type of international trade should become even more prevalent in the next century . But since trade protectionism grows, the nuts and bolts come apart. Contents Classification of trade protectionism Forms of non-tariff barrier Forms of new trade protectionism What can we do to deal with it? Trade barrier Trade barriers are government-induced restrictions on international trade. 1. From the form of trade barrier, it can be divided as tariff and non-tariff barrier. 2. From the time order, trade barrier can be divided into : traditional trade barrier and NTP (New trade protectionism) Non-tariff barrier Import licenses Export licenses quotas Subsidies Voluntary Export Restraints Local content requirements Embargo Devaluation of currency An import license is a document issued by a national government authorizing the importation of certain goods into its territory. It is a way to discriminate against another countrys goods in order to protect a domestic industry from foreign competition . An export license grants permission to conduct a certain type of export transaction An import quota is a type of protectionist trade restriction that sets a physical limit on the quantity of a good that can be imported into a country in a given period of time. 1 Quotas, like other trade restrictions, are used to benefit the producers of a good in a domestic econ
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