Академический Документы
Профессиональный Документы
Культура Документы
International Trade
International trade is the exchange of capital, goods, and services across international borders or territories.
Trade barrier
Trade barriers are government-induced restrictions on international trade Trade barriers are measures that governments or public authorities introduce to make imported goods or services less competitive than locally produced goods and services
Tariff Barriers
Tariff barriers are duties imposed on goods which effectively create an obstacle to trade. Tariffs are widely used to protect domestic producers incomes from foreign competition.
Types of Tariffs:
On the basis of Purpose:
Revenue Tariff Protective Tariff
Tariff Barriers tend to Increase: 1. Inflationary pressures 2. Special interests privileges 3. Government control and political considerations in economic matters.
Tariff Barriers tend to Weaken: 1. Balance-of-payments positions 2. Supply-and-demand patterns 3. International relations (they can start trade wars)
Tariff Barriers tend to Restrict: 1. Manufacturer supply sources 2. Choices available to consumers 3. Competition
(3) Standards: 1. Standard Disparities 2. Intergovernmental Acceptances of testing methods and standards 3. Packaging, labeling and marketing
(4) Government Participation in Trade: 1. Government procurement policies 2. Export subsidies 3. Countervailing duties 4. Domestic assistance programs
Impact of NTBs:
Have emerged as potent Protectionist tool. It being less transparent, its difficult to identify and quantify its impact.
Summary
Although tariffs have significantly reduced over the last twenty years in global trade. Bigger concern is the dismantling of non-tariff barriers that restrict trade from less developed countries. Tariffs distort trade flows Industries of the exporting country is adversly affected by the Tariff as well as Non-Tariff Barriers.