Barriers To Trade
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Barriers To Trade

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Barriers To Trade Barriers To Trade Presentation Transcript

  • Barriers to Trade Why do countries produce goods and services that could be more cheaply purchased from other countries?
  • Reasons
    • To encourage local production
    • To help local firms export
    • To protect local jobs
    • Protect infant industries
    • Reduce dependency
    • Encourage local and foreign direct investment
    • Reduce balance of payment problems
    • Reduce or avoid dumping
  • Commonly used barriers
    • Price based barriers- Ad valorem
    • Quantity limits-quotas- embargo
    • International price fixing- cartel
    • Financial limits- exchange control
    • Foreign investment controls-minority stakes, limiting profits etc
  • Tariffs
    • Export tariff
    • Transit tariff
    • Specific duty
    • Ad valorem duty
    • Compound duty
    • dumping
  • Non – tariff barriers- rules , regulations and bureaucratic
    • Quotas
    • Buy national restrictions
    • Customs valuation
    • Technical barriers
    • Counter trade