📋 Definition: These are regulatory or legal barriers put in place to control or limit imports. Think of them like rules you must follow to enter a VIP club!

🎈 Types

• Health-related Standards: No icky stuff, please! Like the EU & UK not allowing chlorine-washed chicken from the USA.
• Environmental Standards: Keep the planet green! Car emissions standards can help combat climate change.
• Safety Standards: Protecting us from harm, like regulations on cars, chemicals, or kids' toys.
• Disguised Protectionism: Sometimes, these standards just make it harder for foreign goods to get in. Sneaky, right?

📝 Red Tape & Bureaucracy: Imagine having to fill out a gazillion forms before selling something! It's like the time in France when all Japanese video imports had to be inspected in Poitiers, causing massive delays.

Tariff Exercise 🏷️

Imagine your country adding an extra cost to foreign chocolate to protect local chocolatiers.

a. Check the graph for the size of the tariff. b. Pre-tariff volume = Find original demand minus original supply. c. Free trade spending = Pre-tariff volume × Original price. d. Domestic revenue = Quantity × Domestic price. ... f. Post-tariff imports = New demand minus new supply. ... j. Inefficiency = Lost consumer and producer surplus due to the tariff. 

 Quota Exercise 📦 

Like only allowing a certain amount of foreign toys to be sold in your country.

a. Quota size = Check Figure 4.2.6. b. Free trade spending = Original demand × Original price. ... h. PED = Measure of how much people still want the good despite price change. ... m. Consumption inefficiency = Loss in consumer satisfaction.

 Production Subsidy Exercise 🏭

Government gives money to local video game makers to compete with foreign games.

a. Subsidy size = Check Figure 4.2.7. b. Annual import spending = Original demand × Original price. ... m. Consumption inefficiency = Change in consumer surplus.

Export Subsidy Exercise 🚢

Encouraging local farmers to sell oranges abroad by giving them extra money per orange.

a. Subsidy size = Check Figure 4.2.8. b. Annual export revenue before subsidy = Original demand × Original price. ... m. Consumption inefficiency = Change in consumer satisfaction.

Administrative trade barriers are like rules in a game. They control what comes in and out of a country, protect people and the environment, and sometimes are used to sneakily support local businesses. Tariffs, quotas, and subsidies are tools governments use to shape this game, and understanding them helps us see the big picture of international trade. So next time you munch on a foreign chocolate or play a local video game, you'll know there's a whole world of economics behind it! 🌍

Please consult your class materials, including graphs and figures, to perform the exact calculations for the exercises.