Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Trade barriers

936 views

Published on

trade barriers ppt
tariff and non tariff taxes

Published in: Education
  • Be the first to comment

Trade barriers

  1. 1. TRADE BARRIERS TARIFF AND NON-TARIFF
  2. 2. TEAM MEMBERS SECTION-B(2016-18) • VEERANJANEYULU 16091 • MANOHAR REDDY 16093 • PRASUNA SAI RAJ 16074 • HAREESH 16189 • SNEHA BHARGAVI 16055 • G.V.S.N.N VARMA 16098
  3. 3. TARIFF BARRIERS • A Tariff is a tax. • It adds to the cost of imported goods and is one of several trade policies that a country can enact. • The most important of tariff barriers is the customs duty imposed by the importing country. • A tax may also be imposed by the exporting country on its exports. However, governments rarely impose tariff on exports, because, countries want to sell as much as possible to other countries
  4. 4. CONTD.. • Tariffs are often created to protect infant industries and developing economies, but are also used by more advanced economies with developed industries. Here are five of the top reasons tariffs are used Protecting Domestic Employment Protecting Consumers Infant Industries National Security Retaliation
  5. 5. CONTD.. • The benefits of tariffs are uneven. • Unfortunately for consumers - both individual consumers and businesses - higher import prices mean higher prices for goods. • In the long term, businesses may see a decline in efficiency due to a lack of competition, and may also see a reduction in profits due to the emergence of substitutes for their products.
  6. 6. PRICE WITHOUT THE INFLUENCE OF TARIFF DS price quantityQo Qw P- P DD Domestic production imports WS
  7. 7. PRICE WITH THE INFLUENCE OF TARIFF Ws + Tariff price quantity Domestic production DD DS imports Qo Qw P 1 P + WS
  8. 8. IMPORTANT TARIFF BARRIERS • Specific Duty • Ad valorem Duty • Combined or Compound Duty • Sliding Scale Duty • Countervailing Duty • Revenue Tariff • Anti-dumping Duty • Protective Tariff
  9. 9. NON TARIFF BARRIERS • Nontariff barriers are another way for an economy to control the amount of trade that it conducts with another economy, either for selfish or altruistic purposes. Non tariff barriers are mostly imposed by developing countries. • A non tariff barrier is any barrier other than a tariff, that raises an obstacle to free flow of goods in overseas markets. • Non-tariff barriers, do not affect the price of the imported goods, but only the quantity of imports • It includes quotas, embargoes, sanctions, levies
  10. 10. ADVANTAGES Technological innovation Social benefits Environmental benefits Managerial innovation Competitive advantages Integration of regional blocks Review of legislation
  11. 11. IMPORTANT NON TARIFF BARRIERS Quota System Product Standards Domestic Content Requirements Product Labeling Packaging Requirements Consular Formalities State Trading Preferential Arrangements Foreign Exchange Regulations license
  12. 12. EXAMPLES New Zealand's apples account for a third of its agriculture exports but have been banned from Australia since 1921 due to fears about the spread of fire blight, a crop pest.
  13. 13. Philippine mangoes and bananas have to meet strict phytosanitary requirements from the US and Australia.
  14. 14. BIBLIOGRAPHY • http://www.investopedia.com/articles/economics/08/tariff-trade- barrier-basics.asp • www.acdemia.edu • Class notes

×