Task 2 - The second part of the report should describe the mechanisms that regulate international trade. You will need to include and explanation of the following:
Barriers to Trade (Embargoes, Quotas and Tariffs)
Economic Blocs (EU, European Monetary Union and WTO)
For the merit you will need to build on this description and analyse the purpose of these methods that promote and restrict international trade
Task 3 – In this final part of the report you must assess the possible impact of problems posed by operating in international markets. You may want to consider the following:
Diseconomies of scale
Capital and shipping costs
Economic fluctuations in different countries
This is by no means an exhaustive list. You will need to carefully consider the international market arena and evaluate the impact that specific issues might have on your business
Describe the mechanisms (Talk with examples, chosen business) that regulate international trade.
Pros and cons for the economy, business and customers
A trade restriction has an effect on the trade of goods and/or services between the two countries. Created for the protectionism of the countries people, i.e. a trade restriction is here to protect consumers from inferior/low-grade, harmful or dangerous products. Germany unified a law in 1871, which made it illegal for many foreign beers to be sold through in Germany as “beer”. This is because the imported beer quality isn’t meeting Germany’s regulative controls which is here looking out for the countries society.
This law was come into contact with the European Court of Justice in 1987 and made the law to expire, but buying the specific beer is still voluntarily followed by many German’s. If your plans are to start exporting, you’ll need to follow the rules depending on whether your goods or services are going to a country: In the EU
Outside the EU
Outside the EU via...
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