Final answer:
Tariffs are taxes on imports, quotas limit the quantity of imports, and nontariff barriers include various regulations that restrict imports. These methods are a form of protectionism and impact global trade by changing prices and competitive dynamics. The WTO regulates trade disputes and works to reduce these barriers.
Step-by-step explanation:
Tariffs, quotas, and nontariff barriers are three tools used to control the flow of trade between countries, and they are a form of protectionism. Tariffs are taxes imposed on imported goods, which can make foreign products more expensive and less competitive in the domestic market compared to local products. Quotas are limits on the quantity of goods that can be imported, thereby controlling the supply and often increasing the price of these goods domestically. Nontariff barriers are regulations or standards that are not direct taxes but have the effect of restricting imports, such as safety and environmental standards, subsidies for local businesses, and administrative delays at customs.These trade barriers can impact global trade by making goods more expensive for consumers and altering the competitive landscape for producers. The creation of the World Trade Organization (WTO) was a pivotal step in regulating international trade disputes and aiming to reduce such barriers, while also encompassing areas like services, intellectual property, dispute settlement, textiles, and agriculture. Recent years have seen numerous regional trade agreements that aim to reduce or eliminate tariffs and other barriers to facilitate easier trade between member countries.