GOVERNMENTAL

INFLUENCE ON TRADE

SANZIDA BEGUM
ID: 17-002
INSTRUMENTS OF TRADE CONTROL
Two types of trade
controls
those that indirectly affect the
amount traded by directly influencing
prices of exports or imports
those that directly limit the amount of
a good that can be traded
TARIFFS
refer to a government levied tax
on goods shipped
internationally
Tariffs/
duties
goods entering, leaving, or passing through
a country
for protection or revenue
on a per unit basis or a value basis

Levied
on
Collected by Exporting country
Export tariffs
Collected by a country through
which the goods have passed
Transit tariffs
Collected by Importing country
Import tariffs
Tariff as a percentage of the value of
the item
Ad valorem duty
Tariff on per unit basis
Specific duty
MST. SAMSUNNAHER
KHATUN
ID: 17-003
NONTARIFF BARRIERS:
DIRECT PRICE INFLUENCERS
Subsidies
Direct or indirect financial assistance from governments to
their domestic firms to help them overcome market
imperfections and thus make them more competitive in the
marketplace.
agricultural subsidies
overcoming market imperfections
valuation problems



NONTARIFF BARRIERS:
DIRECT PRICE INFLUENCERS
Overcoming
market
imperfections
are more justifiable than tariffs because they seek to
overcome rather than create market imperfections.
Aid and
loans
tied aid and loans require that the recipient spend the funds
in the donor country

Customs
valuation
determining the true value and/or origin of traded products

OTHER DIRECT-PRICE INFLUENCES

special fees deposits
minimum
price levels
ERFANUL ALAM SIDDIQUE
ID:17-056
NONTARIFF BARRIERS:
QUANTITY CONTROLS
Quotas
limit the quantity of a product that can be imported
or exported in a given time frame.


TARIFF
Generates
revenue for
government
QUOTA
Generates
revenue for
companies
NONTARIFF BARRIERS:
QUANTITY CONTROLS
Voluntary export restraint (VER)
A quota on trade imposed from the exporting countrys side, instead of
the importers that is usually imposed at the request of the importing
countrys government.




The most notable example of VERs is when Japan imposed a VER on its
auto exports into the U.S. as a result of American pressure in the 1980s.
The VER subsequently gave the U.S. auto industry some protection
against a flood of foreign competition





COMPANY
A(IMPORTING)
COMPANY
B(EXPORTING)
EXPORT
NONTARIFF BARRIERS:
QUANTITY CONTROLS
Embargoes
A government order that
restricts commerce or exchange
with a specified country. An
embargo is usually as a result of
unfavourable political or
economic circumstances
between nations.
MONIJA KHATUN
ID:17-001
RESTRICTIONS ON SERVICES
Not for profit services: Mail, education, health care & Public transport are
not for profit sector.
Essentiality: Certain services are essential for strategic purposes or social
assistance & should not be sold for profit. Ex- WASA, DESA etc.
There are several reasons for restricting trade in services.
Limiting the free flow of consumable and perishable benefits.
SHATABDI CHOWDHURY
ID:17-024
Professional standards
Govt. limits professional standard ------
To ensure practice by qualified professional
Licensing standard varies from country to country
Immigration
Although maintenance of standard-------
No guarantee to work abroad
In case of equal qualified personnel preference goes
domestic personal to foreign ones .
THANK YOU