Formal trade barriers - definiton
If a government actions can create trade barriers, which are restrictions to free trade. These political actions are formal trade barriers. Quotas, tariffs, and embargoes are three common formal trade barriers.
Quoats
To regulate international trade, governments set a limit on the quantify of a product that may be imported or exported within a given period. This limit is called a quota. Quota may be set on imports from another country to express displeasure at the policies of that country. Quotas can also be set by a country to protect one of its industries from too much competition from abroad. This often is done by infant industries
Tariffs
Another device that governments use to control international trade is the tariff. A tariff is a tax that a government places on certain imported products. Some tariffs are a set amount per pound, gallon, or other unit, while others are figured on the value of the good. Many people believe that tariffs should be used to protect U.S. jobs from foreign competitions.
Embargoes
Embargo is the action if a government stops the export or import of a product completely. Governments may impose an embargo for many reasons, for example: a government sometimes imposes an embargo to express its disapproval of the actions or policies of another country.