Reference no: EM133131219

Due to steadily decreasing tariff barriers since World War II, countries have become increasingly likely to enact trade barriers in forms other than tariffs. A variety of nontariff barriers such as Import quotas, voluntary export restraints and domestic content requirements had been implemented by various nations with the intention to reduce imports and thus benefit domestic producers. Economists generally agree that nontariff barriers are detrimental and decrease overall economic efficiency. Using appropriate diagram clearly explain the welfare implications of the imposition of import quota in the case of small nation model.