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In the context of international business, tariff barriers have traditionally been the most widely recognized instrument used by countries to protect their domestic industries from foreign competition. A tariff is essentially a tax imposed on imported goods, which increases their price in the domestic market, thereby making locally produced goods more attractive to consumers. While tariffs are indeed an important tool in international trade policy, they are far from the only means through which a country can protect its domestic industries and regulate international trade. Other instruments such as non-tariff barriers (NTBs), subsidies, import quotas, licensing requirements, and even currency manipulation also play significant roles in shaping the international business environment and safeguarding domestic industries.

One of the most common non-tariff barriers (NTBs) used by countries is import quotas. Import quotas are restrictions that limit the quantity of specific goods that can be imported into a country over a given period. By controlling the volume of foreign goods entering the domestic market, quotas help maintain domestic production levels and prevent foreign competition from flooding the market. Unlike tariffs, which primarily affect the price of imports, quotas directly regulate the supply, often leading to higher prices for imported goods due to the reduced availability.

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