Tariff and Nontariff Barriers
The dawn of globalization and the advancement of transport and communication technology have resulted in increased international trade. As a result, various multinational companies (MNCs) such as General Motors, Coca Cola, and Toyota have expanded their international activities. Because of the stiff competition that local producers face, various governments have embraced protectionist policies with the aim regulating international trade. For instance, the U.S. government imposed quotas on sugar imports in 1982 as part of its interventions in the sugar industry while Japan began restricting automobile exports to the U.S. In 1981 (Batten & Szilagyi, 2011). With increased calls for liberalism fueled by capitalist states, various trade restrictions have been scrapped off to facilitate international trade. This essay analyzes tariff and non-tariff barriers as protectionism policies adopted by various countries.
Tariff Barriers
Tariffs refer to taxes that are imposed on governments on commodities with the aim of controlling economic activities. Tariff barriers are very important because they help in protecting industries from international competition (Heetkamp & Tusveld, 2011). Increased international trade flows have resulted into the near collapse or collapse of local industries. This occurs because of the importation of cheap products that compete with local products in what is commonly referred to as dumping. As such, governments impose tariff barriers to protect budding local industries from stiff competition. Tariffs are also taxed to generate revenue. Taxation is one of the main methods that governments use when collecting its revenues. As such, tariffs imposed on imported goods provide good sources of revenue that can be used to sponsor development projects such as the construction of schools and health centers.
Tariff-rate quotas are also excellent forms of tariff barriers to international trade. Quotas normally involve government restrictions on the quality of commodities that are imported into the state. Tariff-rate quotas set a low tariff for imports of a fixed quantity of a given product and a higher tariff for any imports...
Brexit and British Trade: Advantages and Difficulties In June 2016, the UK voted to leave the European Union (EU). Commonly called "Brexit," the decision has raised a number of questions regarding Britain's current trading arrangements as well as possibilities and obstacles that await the UK post-EU (Hatzigeorgiou, Lodefalk, 2016). From a trade theory and policy perspective, this paper will assess the UK's current trading arrangements along with the potential advantages and
However, each stakeholder has its own interests at heart. Those interests in the long-run may be served by freer trade, but in the short-run they are driven more by political considerations. Works Cited Markheim, Daniella & Rield, Brian M. (2007) Farm Subsidies, Free Trade and the Doha Round. The Heritage Foundation. Retrieved December 11, 2008 at http://www.heritage.org/RESEARCH/BUDGET/wm1337.cfm Chang, Ha-Joon. (2007). Protectionism...the Truth on a $10 Bill. The Independent. Retrieved December 11, 2008
Protectionist Strategies Strategic Reasons why countries Protectionist Theories and Measures Tariffs Import Quotas Administrative barriers Anti-dumping laws Direct subsidies Export Exchange Rate Manipulation International patent systems Protectionism is a concept through which governments and states exercise control over the trading patterns of the country and use measures that in turn are expected to help the domestic industry develop. The main argument that we shall be following for this essay is that Free trade can only be "free" when nations and states are
Trade Liberalization In basic terms, trade liberalization has got to do with bringing down the various trade limitations existing between countries. It is important to note that in an attempt to protect their domestic industries, many countries from across the world have in the past erected numerous protectionist measures including but not limited to tariffs and quotas. This has amongst other things had the effect of stifling international trade. This text
Despite the fact that it is considered to be responsible for the immense inequalities in the economic sector, it also provides the progress for least developed countries and the environment for the maintenance of the developed countries. The existence of trade blocks such as NAFTA or ASEAN are even more reasons to consider globalization as a means of improvement in terms of politics, economic, and social aspects of life. References ASEAN.
Say for instance that the central region of a large city is subjected to increased industrialization and major investments from foreign partners. This will increase the value of that particular region, will capture the interest of other investors and will increase the living standards of the workers and the population located in the vicinity of the new business venture. However, the marginal regions of the city, where the poorer
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