GOVERNMENTAL INFLUENCE ON TRADE

SANZIDA BEGUMID: 17-002

INSTRUMENTS OF TRADE CONTROL

Two types of trade controls

those that indirectly affect the amount traded by directly influencing prices of exports or imports

those that directly limit the amount of a good that can be traded

TARIFFS

• refer to a government levied tax on goods shipped internationally

Tariffs/ duties

•goods entering, leaving, or passing through a country •for protection or revenue•on a per unit basis or a value basis

Levied on

Export tariffs •Collected by Exporting country

Transit tariffs •Collected by a country through which the goods have passed

Import tariffs •Collected by Importing country

Ad valorem duty •Tariff as a percentage of the value of the item

Specific duty •Tariff on per unit basis

MST. SAMSUNNAHER KHATUNID: 17-003

NONTARIFF BARRIERS: DIRECT PRICE INFLUENCERS Subsidies

Direct or indirect financial assistance from governments to their domestic firms to help them overcome market imperfections and thus make them more competitive in the marketplace.agricultural subsidies overcoming market imperfectionsvaluation problems

NONTARIFF BARRIERS: DIRECT PRICE INFLUENCERS

Overcoming market imperfections • are more justifiable than tariffs because they seek to overcome rather than create market imperfections.

Aid and loans •tied aid and loans require that the recipient spend the funds in the donor country

Customs valuation •determining the true value and/or origin of traded products

OTHER DIRECT-PRICE INFLUENCES

special fees deposits minimum price levels

ERFANUL ALAM SIDDIQUEID:17-056

NONTARIFF BARRIERS: QUANTITY CONTROLSQuotas

limit the quantity of a product that can be imported or exported in a given time frame.

TARIFFGenerates revenue

for government

NONTARIFF BARRIERS: QUANTITY CONTROLS

Voluntary export restraint (VER)A quota on trade imposed from the exporting country’s side, instead of the importer’s that is usually imposed at the request of the importing country’s government.

The most notable example of VERs is when Japan imposed a VER on its auto exports into the U.S. as a result of American pressure in the 1980s. The VER subsequently gave the U.S. auto industry some protection against a flood of foreign competition

COMPANY

A(IMPORTING)

COMPANY

B(EXPORTING)

EXPORT

NONTARIFF BARRIERS: QUANTITY CONTROLS Embargoes

A government order that restricts commerce or exchange with a specified country. An embargo is usually as a result of unfavourable political or economic circumstances between nations.

MONIJA KHATUNID:17-001

RESTRICTIONS ON SERVICES

SHATABDI CHOWDHURYID:17-024

Professional standards

• To ensure practice by qualified professional• Licensing standard varies from country to country

Govt. limits professional standard ------

• No guarantee to work abroad• In case of equal qualified personnel preference goes domestic personal to foreign ones .

Immigration

Although maintenance of standard-------

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