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International Business Bachelor - Essay Example

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Summary
An essential shift is taking place in the world economy. We are moving away from a world in which national economies were comparatively independent entities, isolated from each other by barriers to cross-boarder trade and investment; by distance, time zones and language; and by national differences in government regulation, culture and business systems…
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International Business Bachelor

Download file to see previous pages... The process by which this is occurring is commonly referred to as globalization. (Hill 2002)
The purpose of this paper is to examine tariff and non-tariff policies that control trade between countries. Quiet a number of these policies are now a matter of important disciplines under the 1994 General Agreement on Tariffs Trade agreement that is administered by the World Trade Organization (WTO).
Accessibility to an import market may be in a weak position by the tariff barriers, and the non-tariff barriers, of the importing country. The tariff barriers or import restraints look after the domestic manufacturers or producers from foreign competition. Export products usually become less competitive, or uncompetitive, as a result of the barriers.
Tariffs, which are taxes on trade in of supplies into a country or region, are among the oldest forms of government intervention in financial activity. They are implemented for two clear economic purposes. First, they grant revenue for the government. Second, they get better economic returns to firms and suppliers of resources to domestic industry that faces competition from foreign imports. Tariffs are broadly used to protect domestic producers' incomes from foreign competition. ...
Tariffs are broadly used to protect domestic producers' incomes from foreign competition. This fortification comes at an economic cost to domestic consumers who pay higher prices for import challenging goods and to the economy as a whole through the inefficient allocation of resources to the import competing domestic industry. Therefore, since 1948, when average tariffs on manufactured goods surpasses 30 percent in most developed economies, those economies have sought to reduce tariffs on manufactured goods through several rounds of discussions under the General Agreement on Tariffs Trade.

Non Tariff Barriers
"Non-tariff barriers include "non-science based sanitary and phytosanitary (SPS) standards, customs procedures, government monopolies and lack of transparency in regulations".
(USEU: Article)
Some non-tariff trade barriers are mainly acceptable in very partial circumstances, when they are measured necessary to keep health, safety, or sanitation.
Non-tariff barriers to trade can be:
State subsidies, procurement, trading, and ownership.
National regulations on health, safety, employment.
Product classification.
Quotas.
Foreign Exchange: controls and multiplicity.
Over elaborate or inadequate infrastructure.
'Buy national' policy.
Intellectual property laws (patents and copyrights).
Bribery and corruption.
Unfair customs procedures.
(Non-tariff barriers to trade - Wikipedia, the free encyclopedia)

Case Study: Protectionism in the U.S.
The United States likes to think itself as a nation committed to unrestricted free trade. In their negotiations with trading partners such as China, the European Union, and Japan, U.S. trade representatives can often be heard claiming that the U.S. ...Download file to see next pagesRead More
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