International Trade

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Modern non-tariff measures
1. Import deposit schemes: this requires importers to deposit a certain amount with the central bank of the country. This makes importing more time consuming and more expensive and reduces the liquidity of the importing firm.

2. Voluntary Export Restrain (VER): it is an agreement between two countries where the government of exporting country agrees voluntary to restrict the volume of its exports of a certain good. Ex. Japan’s VER with USA in the export of motor cars.

3. Product standard regulations: A country can use strict health and safety regulations to limit imports. Goods can be rejected if they do not satisfy adequate standers

4. Complex custom procedures: complex customs procedures and paper work will cause unnecessary delay and increase the difficulty and cost of exporting.

5. Government contract policy: a government may have a policy of placing orders with domestic producers rather than foreign firms even if foreign goods are better or cheap.

6. Campaigns: a government may campaign the virtues (qualities) of buying domestic goods which in turn reduces the demand for the foreign goods.

Modern non-tariff measures
7. Import deposit schemes: this requires importers to deposit a certain amount with the central bank of the country. This makes importing more time consuming and more expensive and reduces the liquidity of the importing firm.

8. Voluntary Export Restrain (VER): it is an agreement between two countries where the government of exporting country agrees voluntary to restrict the volume of its exports of a certain good. Ex. Japan’s VER with USA in the export of motor cars.

9. Product standard regulations: A country can use strict health and safety regulations to limit imports. Goods can be rejected if they do not satisfy adequate standers

10. Complex custom procedures: complex customs procedures and paper work will cause unnecessary delay and increase the difficulty and cost of exporting.

11. Government contract policy: a government may have a policy of placing orders with domestic producers rather than foreign firms even if foreign goods are better or cheap.

12. Campaigns: a government may campaign the virtues (qualities) of buying domestic goods which in turn reduces the demand for the foreign goods.

Aid: help or support
Overseas aid to less developed countries can take the following forms 1.
2. Food aid
3. Financial aid
4. Technological aid
5. Loans
6. Debit relief

Arguments for and against aid
* Foreign aid to less developed countries can provide food and help them invest in the schools, hospitals, health care and technology they need to care for their populations and help their economies to grow.

* But many poorest countries that receive foreign aid remain poor and for some, economic growth is negative. * Mainly less developed countries are poorly managed or do not have the skills. * Foreign aid is often used to fund wars in less developed countries. * Some governments of less developed countries are corrupt and overseas aid is misused.

Aid: help or support

Overseas aid to less developed countries can take the following forms 7.
8. Food aid
9. Financial aid
10. Technological aid
11. Loans
12. Debit relief

Arguments for and against aid
* Foreign aid to less developed countries can provide food and help them invest in the schools, hospitals, health care and technology they need to care for their populations and help their economies to grow.

* But many poorest countries that receive foreign aid remain poor and for some, economic growth is negative. * Mainly less developed countries are poorly managed or do not have the skills. * Foreign aid is often used to fund wars in less developed countries. * Some governments of less developed countries are corrupt and overseas aid is misused.

Free trade area is a type...
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