Tariff and Non Tariff Barriers

1. Tariff and Non Tariff Barriers Overview 2. Trade Barriers Used to encourage and protect existing domestic industry Trade barriers are Tariffs that Increase Trade Weaken Trade Restrict Trade Quotas Boycotts and Embargoes 3. Impact of Tariff (Tax) Barriers Tariff Barriers tend to Increase : Inflationary pressures Special interests privileges Government control and political considerations in economic matters The number of tariffs they beget via reciprocity Tariff Barriers tend to Weaken : Balance-of-payments positions Supply-and-demand patterns International relations (they can start trade wars) 4. Non Tariff - Trade Barriers Non Tariff barriers - are another way for an country to control the amount of trade that it conducts with another country, either for selfish or altruistic purposes. Any barrier to trade creates an economic loss, which means it does not allow the markets to function properly. 5. Six Types of Non-Tariff Barriers 2) Customs and Administrative Entry Procedures: Valuation systems Antidumping practices Tariff classifications Documentation requirements Fees 1 ) Specific Limitations on Trade Quotas Import Licensing requirements Proportion restrictions of foreign to domestic goods (local content requirements) Minimum import price limits Embargoes 6. Six Types of Non-Tariff Barriers (cont'd.) (3) Standards: Standard disparities Intergovernmental acceptances of testing methods and standards Packaging, labeling, and marking ( 4) Government Participation in Trade: Government procurement policies Export subsidies Countervailing duties Domestic assistance programs 7. Six Types of Non-Tariff Barriers (cont'd.) 5) Charges on imports: Prior import deposit subsidies Administrative fees Special supplementary duties

Import credit discriminations Variable levies Border taxes 6) Others: Voluntary export restraints Orderly marketing agreements 8. New Zealand's apples account for a third of its agricultural exports but have been banned from Australia since 1921 due to fears about the spread of fire blight, a crop pest. Apples Banned - Non Tariff Barrier By Doug Latimer in Sydney Published: 1:00AM BST 13 Apr 2010 9. Mangoes Philippines Restrictions It is a common practice in many countries to use non-tariff barriers to control the entry of imports. For instance, Philippine mangoes and bananas have to meet strict phytosanitary requirements from the US and Australia. 10. McDonald France Big Beef McDonalds France in 1998, ran a print ad campaign featuring overweight cowboys complaining about the fact that McDonald's France refuses to buy American beef but uses only French, to "guarantee maximum hygienic conditions" an unsubtle effort to identify the Global Arches with European efforts to block the import of hormone-laced American beef. (Karon, 2002) 11. General Agreement on Tariffs and Trade Paved the way for the first effective worldwide tariff agreement. Basic Elements of the GATT : Trade shall be conducted on a non-discriminatory basis. Protection shall be afforded domestic industries through customs tariffs, not through such commercial measures as import quotas. Consultation shall be the primary method used to solve global trade problems. Eliminating barriers to international trade (Uruguay Round): The General Agreement on Trade in Services (GATS) Trade-Related Investment Measures (TRIMs) TradeRelated Aspects of Intellectual Property Rights (TRIPs) 12. Summary Although tariffs have significantly reduced over the last twenty years in global trade. Bigger concern is the dismantling of non-tariff barriers that restrict trade from less developed countries. The agricultural sector has had its high share of discriminatory trade practices to protect inefficient producers. Tariffs distort trade flows

international business
1. The exchange of goods and services among individuals and businesses in multiple countries. 2. A specific entity, such as a multinational corporation or international business company that engages in business among multiple countries.

INTERNATIONAL BUSINESS MANAGEMENT The beverages you drink might be produced in India, but with the collaboration of a USA company. The tea you drink is prepared from the tea powder produced in Sri Lanka. The spares and harddisk of the computer you operate might have been produced in the United States of America. The perfume you apply might have been produced in France. The television you watch might have been produced with the Japanese technology. The shoe you wear might have been produced in Taiwan, but remarketed by an Italian company. Air France and so on so forth might have provided your airtravel services to you. Most of you have the experience of browsing Internet and visiting different web sites, knowing the products and services offered by various companies across the globe. Some of you might have the experience of 'even ordering and buying the products through Internet. This process gives you the opportunity of transacting in the international business arena without visiting or knowing the various countries and companies across the globe. You get all these even without visiting or knowing the country of the company where they are produced. All these activities have become a reality due to the operations and activities of international business. Thus, international business is the process of focusing on the resources of the globe and objectives of the organizations on global business opportunities and threats.

Nature of I.B 1-Accurate information 2-Information not only accurate but should be timely 3-Size of I.B should be large. 4-Market segmented based on job effect segmented. 5-International market have more potential then domestic market.

scope of I.B 1- International market. 2-International finance investment.

3-Global human resource. 4-Foreign exchange.