Introduction Protectionism Barriers
barriers Non tariff barriers
The globalization permits to companies more business possibilities, access to new technology and sale products all around the world. Which obstacles companies will met during internationaltrade ?
Economic policy of restraining trade between states. Conducted by a state for protecting its producers against competition from producers in other States
SomeGoals : job retention reducing the trade deficit defense of living standards
Trade barriers :
Government laws, regulations, policies, or practices that either protect domestic products fromforeign competition or artificially stimulate exports of particular domestic products.
The most common barriers to trade are tariffs, quotas, and nontariff barriers.
Providing revenue to the state budget (Officially) removed after various international agreements from the negotiations in the GATT
40% of taxes in 1947 to about 18% in 1962 and 5% in 1994.Behind the virtual elimination of tariffs is hiding the proliferation of non tariff still curb international trade.
Most common barriers
Quantitative restriction (quotas and embargoes) Administrative barriers(control) Subvention ( also call grant) Managed trade Standards Protection money
Quotas : Quota is an annual quantitative limitson imported goods.
A refusal to sell to a country for different reason
Example : Embargo on Cuba by USA (1962)
Absolute restriction against the purchase andimportation of certains goods from others countries
Administrative process : The regulations and reserve administrative must be complete by the importers to sell...