1. Non-Tariff Trade Barriers Discriminatory measures used by governments to keep imports out without using tariffs

2. Non-Tariff Trade Barriers w Import Quotas w Voluntary Export Restraints w Health and Safety Standards w Government Procurements w Domestic Content Requirements w Intellectual Property Rights w Export Subsidies

3. Why Import Quotas? For the following reasons governments choose import quotas: As insurance against further increases in import spending …. to improve balance of payments; and To gain government officials greater administrative flexibility and power

4. Welfare Effects of Import Quotas w Monopoly is Not Created: Consumers lose; Producers gain; Importers gain quota rents; and Net National Loss of Welfare = Deadweight loss of trade restrictions w Monopoly is Created: Consumers lose; Producers gain; Importers gain quota rents; and Net National Loss of Welfare = Deadweight loss of trade restrictions + Deadweight loss of monopoly