1 / 12

Chapter 3

Chapter 3. Trade Distortions and Marketing Barriers. Chapter Outline. Protection of Local Industries Government: A Contribution to Protectionism Marketing Barriers: Tariffs Marketing Barriers: Nontariff Barriers Private Barriers World Trade Organization (WTO) Preferential Systems.

psmalling
Download Presentation

Chapter 3

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Chapter 3 Trade Distortions and Marketing Barriers

  2. Chapter Outline • Protection of Local Industries • Government: A Contribution to Protectionism • Marketing Barriers: Tariffs • Marketing Barriers: Nontariff Barriers • Private Barriers • World Trade Organization (WTO) • Preferential Systems

  3. Protection of Local Industry • Keeping Money at Home • Reducing Unemployment • Equalizing Cost and Price • Enhancing National Security • Protecting Infant Industry

  4. Marketing Barriers: Tariffs • Direction: Import and Export Tariffs • Purpose: Protective and Revenue Tariffs • Lengths: Tariff Surcharge versus Countervailing Duty • Rates: Specific, Ad Valorem, and Combined • Distribution Point: Distribution and Consumption Taxes

  5. Marketing Barriers: Nontariff Barriers • Government Participation in Trade - Administrative Guidance - Government Procurement and State Trading - Subsidies

  6. Marketing Barriers: Nontariff Barriers • Customs and Entry Procedures - Classification - Valuation - Documentation - License or Permit - Inspection - Health and Safety Regulations

  7. Marketing Barriers: Nontariff Barriers • Product Requirements - Product Standards - Packaging, Labeling, and Marking - Product Testing - Product Specifications

  8. Marketing Barriers: Nontariff Barriers • Quotas - Absolute Quotas - Tariff Quotas - Voluntary Quotas

  9. Marketing Barriers: Nontariff Barriers • Financial Control - Exchange Control - Multiple Exchange Rates - Prior Import Deposits and Credit Restrictions - Profit Remittance Restrictions

  10. Private Barriers • Affiliated firms' business practices • Cooperative business groups - keiretsu - chaebol

  11. The World Trade Organization (WTO) • Goal: broad, multilateral, and free worldwide system of trading • Most Favored Nation (MFN) Principle • Normal Trade Relations (NTR) Principle

  12. GSP • Generalized System of Preferences (GSP) • Preferential system • Aiding economic development of developing countries • Allowing duty-free entry of products

More Related