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Political Restrictions and Logistics - Essay Example

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This paper discusses Political Restrictions and Logistics performance index and how it can be used. Among the key political restrictions include; banning some types of shipment, this is applicable if products may compromise the national security of a particular country…
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Political Restrictions and Logistics
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Political restrictions.

A country may implore a number of restrictions to govern transactions on cross border trade. Among the key political restrictions include; banning some types of shipment, this is applicable if products may compromise the national security of a particular country. For example, banning of shipment of materials suspected to be used in the building of nuclear weapons. Secondly, the restriction of currency flow can also be effected by the government of a certain country. This is normally done to exonerate a country from suffering economically through importing more than it exports. The other common restriction is the imposition of taxes and tariffs on imports. Lastly, a government may ban trade between it and another country or countries. This is called “Embargoes”.
Logistic performance index and how it can be used. Logistic Performance Index is an international logistic assessment tool used to determine a countries global trade performance in regard to logistical dimensions. These dimensions incude, quality of trade as facilitated by infrastructure, efficiency in regard to the clearance concept, relative ease in the arrangement and pricing of shipment products, tracking and tracing ability of products being exported and imported. The overall quality and competitiveness of services used in logistics which may include transport oparations.Lastly under Logistic Performance Index is reliability. This refers to if the goods are able to reach their intended destination within the expected time. In general outline, the logistics performance index can be implored in a number of ways. They guide the assemblance of goods before being exported to another country. They also facilitate import procedures and provide guidelines that are common to parties participating in trade. It gives firms a universal outlook and enables all nations to be potential markets. In conclusion, political restricts uphold the overall trading welfare of a particular country whereas logistic Performance index puts logistic systems in place to enable effective trading environment internationally. Read More
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