4. The 3 major barriers include :
• Socio-cultural barriers
language
preferences
lifestyle
• Economic barriers
Per capita
infrastructure
• Political & legal barriers
1-terrif
2- non-tariff
3-Geographical
Types of barriers
7. GATT
-General Agreement on Tariff and Trade
-elimination of trade restrictions on
specific imported products across 117
countries
-WTO (World Trade Organisation)
created and now have 140 countries
under it
-This enabled more easy import of
product to other countries
9. European
Union
-27 states of Europe
-also work with WTO
-90’s European union agreed to remove
the trade barriers
-in 2002,most countries adopted euro as
a currency, which made it easy to import
and export products from one European
country to other because of same
currency and no risk of currency
exchang.e
10. European
Union
-in 2004 they added new members from
eastern Europe they have lower wages so
they can do trade with western Europe
because of no restrictions . Firms from
the U.S can establish manufacturing
plants in these countries to produce
products to export in western Europe.
11. Reduced Barriers on
direct Foreign
investment
In recent years, many Asian, European,
and Latin American countries have
reduced their barriers .Firms now have
more freedom to establish subsidiaries or
to acquire existing companies there.
Some countries allow other firms to open
their branches in their countries
13. Barriers used to protect
Local firm
Any government may be tempted to
impose barriers to protect its own firms.
For example, the U.S. government may
impose trade barriers such as tariffs on
imported steel, even though such
barriers are in conflict with previous
trade agreements with other couuntries
14. Barriers used to punish
countries
-Trade barriers are sometimes used to
punish countries for various actions.
-Trade restriction imposed on countries
having
no child labor act
no lawful war act
16. Most of the people agree on this that the trade policy is beneficial because it
provide the facility to consumer for best product quality & price wise free
trade moves production to countries where it is done efficiently .which
causes more employment in the other country . So, the person who gets un-
employed because of it will definitely be againt trade policy
They may agree that a tariff or quota on imported goods prevents free
trade and has unfair advantage in their own market they may disagree on
whether governments should be allowed to use other more trade
restrictions against foreign firms or provide incentives that give their local
firms an advantage
Disagreement about
international trade Policy
17. Some countries use these strategies to satisfy locals industries:
1. Firms don’t have environmental restriction so it can produce at a lower
cost than firms in othercountries.
2. Firms don’t follow labor laws and are ableto produce products at a lower
cost than firms in other countries by relying mostly on children to
produce the products.
3. Firms based in one country are allowed by their government to offer
Bribes (rishwat) to large customers when doing business deals in a
particular
industry. These firms have more advantage over firms in othercountries that
are not allowed to offer bribes.
4. Firms in one country receive tax breaks if they are in specific industries.
Such breaks are not necessarily subsidies
Disagreement about
international trade Policy