Preview

Bangladesh's Trade Barriers in Global Perspective - a Comparative Analysis

Powerful Essays
Open Document
Open Document
11756 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Bangladesh's Trade Barriers in Global Perspective - a Comparative Analysis
PF/C-180/IRP ABSTRACT Freeing trade frequently benefits the poor especially. Many developing countries have high tariffs. Since early 1980s Bangladesh promoted trade mainly through removal of structural obstacles to production and trade. In this paper a number of measures to determine crosscountry Trade Barrier were discussed. Though the methodology adapted by Dr Raihan got especial treat as it is current and relates to Bangladesh. Then Bangladesh’s progress of trade with SAFTA countries and other major trading partners were discussed. Later a trade barrier index was constructed, replicating Dr Raihan’s model and using most recent dataset, considering only the import to Bangladesh from SAFTA countries and other major trading partners. It is found that Bangladesh is gradually opening up her market. However, it would be of great interest to Bangladesh to continue opening up especially within the region.

BANGLADESH'S TRADE BARRIERS IN GLOBAL PERSPECTIVE - A COMPARATIVE ANALYSIS
References: A. B. Defence Services Command and Staff College (DSCSC) Précis on Individual Joint Services Stuff Duties Manual 2003. INTRODUCTION

Research Paper, for DSCSC 2008- 2009 course.

“It is inconsistent to support a policy of low trade barriers. Either trade barriers are useful, then they cannot be high enough; or they are harmful, then they have to disappear completely.” - Ludwig von Mises, economist.
1. In most simplistic terms the Trade barrier/restrictiveness is a government’s

regulations that restrict the trade of one country with all other trading partner countries. Within today's global economy countries now trade more intensively and frequently than in

the past. Trade has become an increasingly important global economic activity, with annual trade volumes increasing sixteen fold over the last fifty years and the ratio of world exports to GDP now approaching twenty percent. With this recent acceleration of global trade, countries throughout the world have benefited from
Continue Reading
View Writing Issues

You May Also Find These Documents Helpful

  • Better Essays

    Trade and Finance Eco372
    • 956 Words
    • 4 Pages

    Trade and Finance Eco372

    In order to understand international trade it is important to recognize what the effects of international trade have on the GDP, domestic markets and university students. International trade is essentially when two or more countries exchange goods and services. Many countries export their goods and services to other countries and in turn may also import goods and services from other countries into their own. There have been exceptional achievements with technology, which have made it much easier to trade on an international level. The communication, as a result of these technology advancements, has improved exponentially and it has truly simplified this process. With that being said it can be confirmed that…

    • 956 Words
    • 4 Pages
    Better Essays
    Read More
  • Better Essays

    International Trade Simulation and Report
    • 1417 Words
    • 6 Pages

    International Trade Simulation and Report

    There are some limitations to international trade as well. Some of the limitations are trade barriers, which include government imposed restraints on the flow of goods or services, tariffs, and quotas. Tariff is a tax imposed on a product or service, and apart of a government’s policy to control trade between nations. For political reasons, tariffs are normally imposed on imported goods.…

    • 1417 Words
    • 6 Pages
    Better Essays
    Read More
  • Good Essays

    What Makes Poor Countries Poor?
    • 658 Words
    • 3 Pages

    What Makes Poor Countries Poor?

    For many nations it is very common to impose barriers to trade. These come in the forms of high tariffs and quotas that keep foreign imports expensive and protect domestic markets. While in theory they protect a country's workforce, barriers to trade actually make countries worse off economically by preventing them from being active in international trade. High tariffs prohibit countries from producing goods that they are most efficient in producing, and force them to provide such a wide variety of goods that they become very inefficient. This violation of the Law of Comparative Advantage keeps nations poor because they cut themselves off from technology and maintain low standards of living due to the lack of competition to produce high quality goods. This problem was illustrated in The Economist which stated that tariffs imposed by industrial nations are 10% lower than those of developing nations (The Economist, July 1999). Thus, developing countries are poor because of the high tariffs that they themselves impose on imports. If these nations would lower trade barriers it would allow them to import goods they do not efficiently produce and as a consequence, jobs and capital would be reallocated to more productive sectors of the economy. By focusing on these sectors of high productivity, the country can then generate profits through…

    • 658 Words
    • 3 Pages
    Good Essays
    Read More
  • Satisfactory Essays

    Summary and Discussion of the Article, On Eliminating Non-Tariff Barriers in a Time of Worldwide Economic Crisis: China's Role
    • 555 Words
    • 3 Pages

    Summary and Discussion of the Article, On Eliminating Non-Tariff Barriers in a Time of Worldwide Economic Crisis: China's Role

    This paper is talking about non-tariff barriers and how they affect developing countries. It focuses on the negative aspects and compares relationships with both developing and developed countries.…

    • 555 Words
    • 3 Pages
    Satisfactory Essays
    Read More
  • Good Essays

    International Trade and Comparative Advantage
    • 1234 Words
    • 5 Pages

    International Trade and Comparative Advantage

    In spite of the strong theoretical case that can be made for free international trade, every country in the world has erected at least some barriers to trade. Trade restrictions are typically undertaken in an effort to protect companies and workers in the home economy from competition by foreign firms. A protectionist policy is one in which a country restricts the importation of goods and services produced in foreign countries. The India, for example, uses protectionist policies to limit the quantity of foreign- produced sugar coming into country. In general, protectionist policies imposed for a particular good always reduce its supply, raise its price, and reduce the equilibrium quantity. Protection often takes the form of an import tax or a limit on the amount that can be imported, but it can also come in the form of voluntary export restrictions and other barriers. Tariff rates on dutiable imports have fallen dramatically over the course of history. A tariff is a tax on imported goods and services. A tariff raises the cost of selling imported goods. It thus shifts the supply curve for goods to the left. The price of the protected good rises and the quantity available to consumers falls. Protectionist policies reduce the quantities of foreign goods and services supplied to the country that imposes the restriction. As a result, such policies shift the supply curve to the left for the good or service whose imports are restricted. In the case shown, the supply curve shifts to S2, the equilibrium price rises to P2, and the equilibrium quantity falls to Q2. One of the most common protectionist measures now in use is the antidumping proceeding. A domestic firm, faced with competition by a foreign competitor, files charges with its government that the foreign firm is dumping, or charging an unfair price. Under rules spelled out in international negotiations that preceded approval of the World Trade Organization, an unfair price was defined as a price below production…

    • 1234 Words
    • 5 Pages
    Good Essays
    Read More
  • Best Essays

    The Role International Institutions Played in Leberating Free Trade
    • 2326 Words
    • 10 Pages

    The Role International Institutions Played in Leberating Free Trade

    “Free trade is a powerful instrument of freedom; a vibrant and dynamic market is the most powerful force for economic growth and sustainable development. This is not ideology talking. Facts speak for themselves and they tell us that free trade means bread, bread for the neediest of our people” (Quotations, 2009).…

    • 2326 Words
    • 10 Pages
    Best Essays
    Read More
  • Powerful Essays

    Barriers for Development of Bangladesh
    • 9742 Words
    • 39 Pages

    Barriers for Development of Bangladesh

    This paper develops an index of trade barrier for 108 countries and makes a comparative analysis of Bangladesh’s trade barrier indices in a global context. Bi-variate as well as multivariate cross-country econometric models have been estimated to explain cross-country variations in trade barrier indices. The results show that cross-country variations in trade barrier indices are much influenced by variations in per capita income, population, the ratio of foreign direct investment to GDP and literacy rate. The findings for a much disaggregated level of commodity categories show that Bangladesh possesses high trade barrier indices. I. INTRODUCTION…

    • 9742 Words
    • 39 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    Measurement of Non-Tariff Barriers
    • 31375 Words
    • 126 Pages

    Measurement of Non-Tariff Barriers

    For governments, the advantage of non-tariff barriers (NTBs) to trade is that their effects are more certain than for tariffs. Now that tariff barriers have been substantially reduced, there has been increasing interest in the ways that non-tariff barriers (NTBs) may distort and restrict international trade. This working paper assesses currently available methods for quantifying NTBs. Calculation of the tariff equivalent of a given NTB for a given economic indicator is complex, and requires a great deal of information. Measures that are equivalent for one indicator will not be so for others, and there is no substitute for NTB-specific expertise.…

    • 31375 Words
    • 126 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    Domestic vs International Trade
    • 1888 Words
    • 8 Pages

    Domestic vs International Trade

    International 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, its economic, social, and political importance has been on the rise in recent centuries.…

    • 1888 Words
    • 8 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    How Realistic Is Free Trade in the Real World?
    • 2419 Words
    • 10 Pages

    How Realistic Is Free Trade in the Real World?

    Going by the standard definition of the term “Trade”, it is nothing but a simple activity that involves two or more countries engaging in the exchange of goods and services. Such exchanges of goods or services can be between two parties or several parties. Based on trade, people in many countries could have a great number of opportunities to select a wide range of products and services originated from every country around the world. Additionally, it improves not only the terms of trade but also the economic health of each country. Most academic economists agree and accept the obvious theory that trade benefits both parties involved in the transaction. Trade is a concept that exists largely due to the differences in the cost of production of some tradable commodity in the various locations (Zaidi, Kadiwala). Nevertheless, a few countries do not believe in the benefits of trade, they keep pursuing conservative policy and isolate itself from global integration such as North Korea.…

    • 2419 Words
    • 10 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    Economic Policy Paper of Import in Bangladesh
    • 9510 Words
    • 39 Pages

    Economic Policy Paper of Import in Bangladesh

    Foreign Trade Statistics (FTS), one of the core publications of Bangladesh Bureau of Statistics (BBS), is being published annually since 1973-74. It is The 23rd issue which contains information about exports and imports of 2008-09. It should be mentionable here that it presents disaggregated data to the possible extent on foreign trade following Harmonised Commodity Description and Coding System (HS code). The data furnished in this report have been collected from National Board of Revenue (NBR). Although BBS used to collect some export and import documents from various customs stations to ensure complete coverage of foreign trade but for the present issue, the only data source is NBR which brings all the data generated in various customs stations under their documentation. This edition has got two parts: Volume-I having five tables with export data and Volume-II containing four tables with import data. I would like to express my heartfelt thanks to the Director General and his fellow colleagues of BBS for bringing out this report. I also appreciate the relentless efforts of the concerned officers and staff of Foreign Trade Section of National Accounting Wing, BBS for collection and compilation of the data provided in this report. Any comments and suggestions from the users and other stakeholders for further improvement of the publication would be highly appreciated.…

    • 9510 Words
    • 39 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    Investigating the Determinants of Ghana's Agricultural Exports Performance: Focus on Banana, Coffee and Rubber
    • 6137 Words
    • 36 Pages

    Investigating the Determinants of Ghana's Agricultural Exports Performance: Focus on Banana, Coffee and Rubber

    Following recent decline for performance of Ghana in rubber exports, failure of the banana subsector to achieve competitiveness in exports in spite of the prospects reflected so far, and a…

    • 6137 Words
    • 36 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    Report on Export Import Law in Bangladesh
    • 10860 Words
    • 44 Pages

    Report on Export Import Law in Bangladesh

    We are very happy to state that the report on “export-import Law in bangladesh”is completed and ready for your viewing.…

    • 10860 Words
    • 44 Pages
    Powerful Essays
    Read More
  • Good Essays

    Sidcul
    • 555 Words
    • 3 Pages

    Sidcul

    International Trade has become the order of the day in the current environment of Globalization. The nature of economies namely under developed, developing and developed countries as well as the availability of natural resources, labor, technology and capital required for production etc play a important role in countries economy as well as its reliance on international trade. While countries which are rich in resources look for exporting to other countries and earning foreign exchange, countries mostly the developed countries rely on imports from developing countries for their use.Countries like Europe and Us are heavily dependant upon Imports, developing countries like China and other Asian countries tend to rely on exports to these countries.Though the countries and WTO have been advocating free trade and several Bi Lateral Treaties and Multi Lateral treaties have come into being to remove trade barriers from one member county to another, all of the countries still find the need to practice and have protectionist attitude towards international trade. There are political as well as economic considerations that govern the import and export duties levied by Governments. Primarily import and export duties aim to encourage or restrict the consumption as well as production in the domestic economy and market.…

    • 555 Words
    • 3 Pages
    Good Essays
    Read More
  • Powerful Essays

    World Trade Organization: Maldives Trade Policy Review
    • 13588 Words
    • 55 Pages

    World Trade Organization: Maldives Trade Policy Review

    CONTENTS Page I. II. INTRODUCTION OVERVIEW OF THE ECONOMY (1) (2) (3) (4) III. PRODUCTION, PRICES AND EMPLOYMENT PUBLIC FINANCE/FISCAL POLICY FINANCIAL SECTOR AND MONETARY DEVELOPMENT BALANCE OF PAYMENTS AND EXTERNAL SECTOR 5 7 7 7 11 13 14 14 15 16 16 17 17 18 18 19 20 22 22 23 23 24 27 27 27 28 28 29 29 29 30 30…

    • 13588 Words
    • 55 Pages
    Powerful Essays
    Read More

Related Topics