How do non-tariff barriers affect international trade?

Non-tariff barriers significantly impact international trade by imposing restrictions that do not rely on direct financial penalties such as tariffs. These can include quotas, import licensing requirements, standards and regulations, and other measures that make it difficult for foreign products to enter a market.

By using non-tariff barriers, governments can protect domestic industries without the visible costs associated with tariffs. For instance, a country might require that all imported goods meet specific safety or environmental standards, effectively limiting the ability of foreign products to compete if they cannot meet those standards. This method allows countries to exert control over what goods can enter the market, promoting local businesses while simultaneously making it challenging for international organizations to gain a foothold.

In contrast, the other options do not accurately reflect the nature of non-tariff barriers. Promoting fewer product imports directly relates to the functionality of such barriers, but it does not capture the mechanism of imposing restrictions without financial penalties. Simplifying trade regulations or allowing unlimited imports are contrary to the intention and function of non-tariff barriers, which inherently aim to restrict and complicate rather than streamline trade processes.