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B School Student Essay

623 words - 3 pages

Tariff and non-tariff barriers can affect your export business. In most countries, the governments impose these trade barriers and the general purpose behind them is to limit (or sometimes totally ban) the imports of some specific product. By imposing trade barriers, the governments are looking to achieve some or all of these economic targets.
" Encouraging domestic production
" Protecting local employees
" Increasing revenues
" Reducing consumption and reliance on exports
Whether they are able to achieve these targets or not, one thing is for sure, these trade barriers are going to hurt your business, if you are looking to export to that country. Read a little to get an idea of what ...view middle of the document...

Both tariff and non-tariff barriers can ultimately hurt the national economy in the longer run, they provide shield to even those under performing industries and manufacturers who are not competitive at all, hence wasting the country resources and hurting consumers. World Trade Organization has been established in order to lower trade barriers all over the world, and to improve transparency and non-discrimination in international trade. 153 members have joined till now, although no member country has shown total commitment in implementing rules and regulations that are decided at various conferences. Still as an international exporter you should try to target those foreign market where imports are not discouraged in government policies.
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Six Types of Non-Tariff Barriers to Trade
1. Specific Limitations on Trade:
1. Quotas
2. Import Licensing requirements
3. Proportion restrictions of foreign to domestic goods (local content requirements)
4. Minimum import price limits
5. Embargoes
2. Customs and Administrative Entry Procedures:
6. Valuation systems
7. Antidumping practices
8. Tariff...

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