Transaction cost is one of these costs, but mostly mentioned with trade barriers. The trade barrier, also called tariff barracks or non- tariff barracks, focus on the problems that affect transactions in international trade. Transaction cost in economics can be defined as a cost incurred in making an economic exchange. There are a number of kinds of transaction cost have been researched by economists, “search and information costs” (such as those incurred in determining that the required good is available on the market, who has the lowest price.), “Bargaining costs” (the costs required to come to an acceptable agreement with the other party to the transaction, drawing up an appropriate contract and so on.), “Policing and enforcement costs” (the costs of making sure the other party sticks to the terms of the contract, and taking appropriate action if this turns out not to be the case.). Along with the fast development of e-commerce, a new kind of trade barriers, which is called e-commerce barrier, based on information technology appears quietly, in recent years. Though the emergence of this barracks does not been focused by world, it has profoundly affected international trade already.
International Trade and Human Capital Investment with Heterogeneous Firms and Workers: Modeling and Analysis