...Foreign oil and gas services suppliers face a number of barriers in Nigeria, particularly with respect to the movement of personnel and local content requirements. Nigeria imposes quotas on foreign personnel based on the issued capital of firms. Such quotas remain especially strict in the oil and gas sector and may apply to both production and services companies. Oil and gas companies must hire Nigerian workers, unless they can demonstrate that particular positions require expertise not found in the local workforce. Positions in finance and human resources are almost exclusively reserved for Nigerians. Nigerian port practices continue to present major obstacles to trade. Importers report erratic application of customs regulations, lengthy clearance procedures, high berthing and unloading costs, and corruption. These factors can contribute to product deterioration, which may result in significant losses for importers of perishable goods. Nigeria uses nontariff measures to achieve self-sufficiency in certain commodities under its backward integration program Consequences of Trade Restrictions A combination of tariffs, quotas, and subsidies can serve economic, and sometimes political, objectives, but they can also impose significant costs. Tariffs or quantitative restrictions protect domestic industries and workers from foreign competition by raising the prices of imported goods. In this respect, some argue that import restrictions should be viewed as a tax on domestic...
Words: 1737 - Pages: 7
...Trade Name Institution Barriers to trade are government-induced restrictions on trade. There are several different types of trade barrier. They include tariffs and non-tariff barriers. A tariff is the amount of import duty charged on a particular type of goods. Non-tariff trade barriers are measures intended to favor local industry (Maskus, 2001). They can include trade regulations, labeling rules, and unfair government subsidies The World Trade Organization (WTO) deals with the global rules of trade amongst nations and its main purpose is ensuring that trade flows as smoothly, predictably and freely as possible. A major rule of the multilateral trade system states that reductions in trade barriers are applied, on a most-favored-nation basis, to all World Trade Organization members (Hoekman, 2009). This means that no WTO member is discriminated against by a fellow member's trade regime. Regional trade agreements (RTAs) are however an exception to this rule. Under RTAs reductions in trade barriers apply only to the parties to the agreement. There are two major types of regional trade agreements under the World Trade Organization; customs unions and free trade areas. Some countries may decide to sign interim agreements operating during a transition period, ultimately leading to the creation of a customs union or a free-trade area. Regional trade agreements must be consistent with the World Trade Organization rules that govern such agreements, which require...
Words: 653 - Pages: 3
...WHAT IS GLOBAL/INTERNATIONAL TRADE? Global trade is the exchange of capital, goods, and services across international borders or territories. In most countries, such trade represents a significant share of gross domestic product (GDP). While international trade has been present throughout much of history (see Silk Road, Amber Road), it’s economic, social, and political importance has been on the rise in recent centuries. Industrialization, advanced transportation, globalization, multinational corporations, and outsourcing are all having a major impact on the international trade system. Increasing international trade is crucial to the continuance of globalization. Without international trade, nations would be limited to the goods and services produced within their own borders. International trade is, in principle, not different from domestic trade as the motivation and the behavior of parties involved in a trade do not change fundamentally regardless of whether trade is across a border or not. The main difference is that international trade is typically more costly than domestic trade. The reason is that a border typically imposes additional costs such as tariffs, time costs due to border delays and costs associated with country differences such as language, the legal system or culture. Another difference between domestic and international trade is that factors of production such as capital and labor are typically more mobile within a country than across countries...
Words: 7774 - Pages: 32
...Textile and garment industry has been China's major exports, but in recent years, international trade to environmental protection, security and sustainable development focusing on green trade barriers so that many textile exporters suffered great loss. As a result, the developed countries to understanding the green trade barriers to China's textile and garment industry brought about by the impact, and taking appropriate measures to effectively across the textile apparel industry, green trade barriers, has become the government and enterprises that need to be solved. 纺织服装行业一直是我国的出口创汇大户，但是近年来，国际贸易中以环保安全和可持续发展为焦点的绿色贸易壁垒使国内许多纺织品服装出口企业遭遇了巨大的损失。因此，了解发达国家的绿色贸易壁垒给我国纺织服装行业所带来的影响，并采取相应的对策，有效地跨越有关纺织服装行业的绿色贸易壁垒，己成为我国政府和企业急待解决的问题。 As the end of the Uruguay Round and the establishment of the WTO, The development of trade liberalization makes international trade competition more intense, trade protectionism trend to rise. then, the Green Trade Barriers was produced in the late 1980s, and began to rise from 90s in many countries. In fact, under the label of the environmental protection, the Green Trade Barriers has triggered a lot of problems. Many fields of China have been, or are being affected by these strategies. One of these impacts is its impact on China’s Textiles and Garment Exports. 随着乌拉圭回合谈判的结束及世界贸易组织的确立，自由贸易的发展使得国际贸易竞争越来越激烈，贸易保护主义呈现上升趋势。随后在20世纪80年代后期便制定了绿色贸易壁垒条款，从90年代开始很多国家都在实施。实际上，在环境保护的标签之下，绿色贸易壁垒已经引发了很多问题，中国的许多领域都已经或者正在被这些绿色贸易条款影响着,其中就包括对中国纺织品服装出口企业这一领域的影响。 After World War...
Words: 3311 - Pages: 14
...TBT - Technical barriers to trade, a category of nontariff barriers to trade, are the widely divergent measures that countries use to regulate markets, protect their consumers, or preserve their natural resources (among other objectives), but they also can be used (or perceived by foreign countries) to discriminate against imports in order to protect domestic industries. The Agreement on Technical Barriers to Trade tries to ensure that regulations, standards, testing and certification procedures do not create unnecessary obstacles, while also providing members with the right to implement measures to achieve legitimate policy objectives, such as the protection of human health and safety, or the environment. However, the agreement also recognizes countries’ rights to adopt the standards they consider appropri-ate — for example, for human, animal or plant life or health, for the protection of the environment or to meet other consumer interests. Moreover, members are not prevented from taking measures necessary to ensure their standards are met. But that is counterbalanced with disciplines. Technical regulations have to be based on scientific evidence, shall be formulated and applied in such a way as not to create arbitrary or unnecessary obstacles to international trade. The technical regulations shall be applied on the basis of the most-favored-nation and shall not be more burdensome for imported products than for products of national production. The agreement says the procedures...
Words: 323 - Pages: 2
...Executive Summary: Coffee is an important commodity and a popular beverage. Over 2.25 billion cups of coffee are consumed in the world every day. Over 90% of coffee production takes place in developing countries, while consumption happens mainly in the industrialized economies. Worldwide, 25 million small producers rely on coffee for a living. For instance, in Brazil alone, where almost a third of all the world's coffee is produced, over 5 million people are employed in the cultivation and harvesting of over 3 billion coffee plants. In 2009 Brazil was the world leader in production of green coffee, followed by Vietnam, Indonesia and Colombia. 7. Trade Rules and Regulations and Restrictions of USA: As of 2009, there are several United States embargoes and sanctions in force by the United States against several countries and activities, the most notable of which are against countries the federal government of the United States considers State Sponsors of Terrorism Some sanctions imposed by the United States government are: • No arms-related exports • Controls over dual-use exports • Restrictions on economic assistance • Financial restrictions o Requiring the United States to oppose loans by the World Bank and other international financial institutions. o Diplomatic immunity waived to allow families of terrorist victims to file for civil damages in U.S. courts. o Tax credits for companies and individuals denied for income...
Words: 904 - Pages: 4
...LENGTH: 9744 words NOTE: UNITED STATES-CHINA TRADE WAR: SIGNS OF PROTECTIONISM IN A GLOBALIZED ECONOMY? NAME: Kara Loridas LEXISNEXIS SUMMARY: ... Among the aims of the Doha Development Round are a rejection of protectionism and an attempt to ensure fair application of trade rules to developing countries. ... China argued that the increased tariffs imposed by the United States on Chinese tires exceed the permissible maximum tariff rates that the United States may impose on Chinese imports. ... An example of effective negotiations is the settlement of the U.S. complaint alleging a Chinese violation of the national treatment concept by its preferential treatment of domestic products over "like" imported products. ... Cooperative trade relations between the United States and China are important to the global community because the economies of each country are dependent on the rest of the world and the global economy will be harmed by protectionist measures from the first and third largest trading powers. ... Moreover, multilateral negotiations, as opposed to bilateral trade negotiations, are better suited to resolve the United States-China trade disputes because the disputes affect other WTO members in ways beyond the immediate economic impact. ... The most effective way to combat the rapid escalation and retaliatory nature of the disputes is to conduct multilateral negotiations that will preserve the WTO's goal of reducing trade barriers, avoid the adversarial nature of WTO litigation...
Words: 11849 - Pages: 48
...benefits of rising abundance” (JF Kennedy March 14, 1961). The trade barriers have been for a long time a constraint for the economic growth for the small countries that try to export their product abroad. The efficiency of the dismantling of trade barriers requires to first identifying the link between the term “trade” and its consequences on the countries’ economies I trade and his barriers International trade is the exchange of goods and services between countries. This type of trade gives rise to an economic world, which the prices, or demand and supply, affect and are affected by global events. A good example of that is during the 1973 oil crisis. The members of the OAPEC (organisation of Arab petroleum exporting countries) have decided an oil embargo "in response to the U.S. decision to re-supply the Israeli military" during the Yom Kippur war. The economic effect was immediate. The price of oil quadrupled by 1974 to US$12 per barrel (75 US$/m3). The most important effect was on the economy. Because of this embargo some countries couldn’t export or import their product in foreign country. This embargo put some countries in a big trouble concerning the oil supply. Despite this free aspect of the trade, there are some countries that tried to protect their local economy against foreigner investment. So potential investor could not expand, facing the discrimination of the other countries' protectionism. Trade barrier works as a tool to ensure a protectionism policy. They are...
Words: 1691 - Pages: 7
...In today's world there are many issues in need of reformation, one of which is international trade, otherwise known as globalization. Although there are a great deal of rules, regulations, and policies imposed on international trade, the manner in which those rules have been enforced is a major controversy that seems to be escalating day by day. At the center of the controversy is the World Trade Organization (WTO). The WTO was established in 1995 in order to transform the General Agreement on Tariffs and Trade (GATT) into an enforceable global commercial code. Critics of the WTO say that instead of being run democratically and in the interest of member countries, it has become the enforcer of corporate managed trade. A system whose ethics are not in favor of the public interest, instead the focus has shifted to large corporations and making money. Profit is the motivating factor behind decisions made by the WTO. By looking at international trade from the rational perspective, the WTO has not only failed to protect consumers, workers, and the environment, it has also acquired a number of opponents and protestors. Recent issues concerning the WTO include President Clinton's signing of a bill, which grants permanent normal trade relations to China and virtually guarantees them membership into the WTO. Not concerned with China's communist regime that abuses its workers, supporters of the bill call it a "major victory for U.S. companies like Microsoft Corp. and Boeing Co....
Words: 825 - Pages: 4
...Research Task: Trade Barrier and Corruption by Panida Vesakha-Vahrinth The similar concern for all countries being considered for a new market entry is the issue dealing with IPR. Additionally, the rules and regulations for foreign manufacturers for these countries often causes delay in registering new pharmaceutical products in order to provide the local manufacturer maximized domestic opportunity. These rules and regulations include additional inspections of the products that are arguably unnecessary, the costly applications for required permits and license to sale such products, and the product specification requirements that do not applied to the domestic manufacturer (See Exhibit A for further details). According to the Corruption Perception Index provided by Transparency International, the selected countries can be ranked according to the CPI 2010 scores as follow: Canada, Chile, Turkey, China, and India (Exhibit B). The five countries with the highest CPI scores show some culture similarities. All but Singapore receive high score in the IDV category. Singapore, on the other hand, is most influenced by the PDI dimension (Exhibit D). The top five countries have high economic freedom and all but Singapore, score highly on the political freedom scale. These countries also have significantly higher GPD/capital in PPP in comparison to the five countries with the lowest CPI score. The top five countries also have high trade volume in relative to the country’s GDP and have...
Words: 912 - Pages: 4
...International Marketing 4530 15 September 2015 Tariffs and Non-Tariff Barriers to Trade When considering trade on a global scale, one must consider certain trade restrictions imposed on imported goods, or tariffs. Global trade has many benefits such as supplying consumers with a wide assortment of goods, allowing domestic firms to trade internationally, and cutting costs of goods. However, not everyone completely benefits from global trade due to tariff and non-tariff barriers. Monetary restrictions to trade come in the form of tariffs, or a tax on imported goods; non-monetary restrictions on trade are called non-tariff barriers. Tariffs have been used by governments throughout history to control the flow of trade and determine which countries are best to engage in trade. These tools use are used by countries for several different reasons to protect the nation’s economy. Tariffs can be put into place by a nation’s government for virtually any reason seeming fit; however, there are a few main reasons that are reoccurring. A main reason for tariffs is to protect newly established, infant industries from being overpowered by foreign competitors. A high tariff on the importing of a certain goods that are also being domestically produced will decrease foreign competition in that market. Another main reason some governments levy a tariff is to protect the workforce in that country. Some argue that unemployment will rise when cheap, foreign goods are imported to replace domestically...
Words: 887 - Pages: 4
...KHALID ABDOOL 13005239 IIE BCOM 1 GROUP 3 06 OCTOBER 2014 MARKETING ASSIGNMENT Question | Page | 1 | 1 | 2.1 | 2 – 3 | 2.2 | 3 – 4 | 2.3 | 5 | 3.1 | 6 | 3.2 | 6 – 7 | BIBLIOGRAPHY | 8 | Question 1: Q1.1 Pick n Pay is a store with many outlets around the country. It’s a retail store, which is a family favourite due to their variety of goods for their consumer’s households. Their brand is very unique and easily identifiable by its blue and red logo. Its slogan is famous because it makes the consumers feel as if their retail business exists and runs due to their contributions for Pick N pay’s goods. Pick n Pay make their own brand by packaging their products in plastics that abbreviate Pick n Pay’s name as PnP. The new Pick n Pay logo brought about a new change with different features that attracts consumer’s eyes and brings them to the business to shop. We also know that Pick n Pay used a rebranding strategy, which brought a transformation of the whole business. Pick n Pay’s rebranding activity is the biggest undertaking in South Africa as it has proven to be very successful for the company. Pick n Pay works hand in hand with a local packaging company in order to package product with their brand name on it. The brand adds value to the organisation because consumers feel the retailers brand is of better quality and therefore this brand adds value to the organisation because it attracts consumers, brings in customers thus increasing in profits for the business...
Words: 2306 - Pages: 10
...Non-tariff barriers to trade (NTBs) are trade barriers that restrict imports but are not in the usual form of a tariff. Some common examples of NTB's are anti-dumping measures and countervailing duties, which, although called non-tariff barriers, have the effect of tariffs once they are enacted. Some of non-tariff barriers are not directly related to foreign economic regulations but nevertheless have a significant impact on foreign-economic activity and foreign trade between countries. Different types of Non-tariff barriers: There are several different variants of division of non-tariff barriers. These are – 1. Licenses The most common instruments of direct regulation of imports (and sometimes export) are licenses and quotas. License system requires that a state (through specially authorized office) issues permits for foreign trade transactions of import and export commodities included in the lists of licensed merchandises. Product licensing can take many forms and procedures. The main types of licenses are general license that permits unrestricted importation or exportation of goods included in the lists for a certain period of time; and one-time license for a certain product importer (exporter) to import (or export). 2. Quotas Licensing of foreign trade is closely related to quantitative restrictions – quotas - on imports and exports of certain goods. A quota is a limitation in value or in physical terms, imposed on import and export of certain goods for a certain...
Words: 621 - Pages: 3
...Barriers to International Trade- Non-Tariff Barriers and Infrastructure on freight transportation Intro Average applied tariffs on industrial products have declined from 15.5 per cent in 1990 to 7.9 per cent in 2003.[1] Yet, the volume of international trade is still less than one would expect from observed differences in factor endowments, tastes and technology between countries (Trefler, 1995). A possible explanation of the missing trade is non-tariff barriers to trade, including transport costs and other costs related to searching for international suppliers or customers, entering into contracts and shipping the goods or services from the domestic producer to the foreign customer. These transaction costs have several dimensions. First, there are the direct monetary outlays on communication, business travel, freight, insurance and legal advice. These are partly determined by the physical and cultural distance between the trading partners, but also the quality of infrastructure and the cost and quality of related services. EXAMPLE A second dimension of transaction costs is time. The proverbial "time is money" suggests a linkage between monetary outlays and the time dimension, but time also plays a role in its own right. This is particularly the case in industries that have adopted just-in-time business practices and have an international supply network. Just-in-time business practices imply that producers have small inventories of intermediate goods and the...
Words: 3069 - Pages: 13
...ECFI 644 International Economics Instructor: Dosse Toulaboe By Zhenjie Song (Leo) The Impact of Tariff and Non-Tariff Barriers International Trade Introduction In nowadays, tariff and non-tariff barriers have affected the trends and structure of international trade, the geographic direction, and importing and exporting countries relations (Stigler, 1971). This research paper mainly will talk about the tariff, non-tariff, and the relationship and impact of them. Tariff A tariff is simply a tax or duty placed on an imported good by a domestic government. Tariffs are usually levied as a percentage of the declared value of the good, similar to a sales tax. Unlike a sales tax, tariff rates are often different for every good and tariffs do not apply to domestically produced goods. Tariff could be an old and popular method of obtaining revenue from international business and economic activities. Generally, government levy tariffs for three main reasons. The first is that the tariff can protect fledgling domestic industries from foreign competition; the second is that the tariff can protect aging and inefficient domestic industries from foreign competition; the last reason is that the tariff can protect domestic producers from dumping by foreign companies or governments. Dumping occurs when a foreign company charges a price in the domestic market which is "too low". In most instances "too low" is generally understood to be a price which is lower in a foreign market than the price...
Words: 2364 - Pages: 10
