Title: 7 Major Barriers to International Trade
Headings: 7 Major Barriers to International Trade
7 Major Barriers to International Trade
Barriers to international trade

Content: The blocked currency is used as a political weapon in response to the difficult balance payments situation. The blockage is accomplished by refusing to allow importers to exchange their national currency for the seller’s currency. Differential exchange rate: The differential exchange rate is a particularly ingenious method of controlling imports. It encourages the importance of goods the government deems desirable and discourages the importation of goods the government does not want. The essential mechanism requires the importer to pay the varying amount of domestic currency for foreign currency with which to purchase products in different categories. Such as desirable and less desirable products. Government approval for securing foreign exchange: Countries experiencing severe shortages of foreign exchange often use it. At one time or another, most Latin American and East European countries have required all foreign exchange transactions to be approved by the central bank.