What is the d/t b/n tariff and non tariff trade barriers?
Tariff barriers are taxes or duties imposed on imports by a country's government. They are used to protect domestic industries by making imported goods more expensive, thus reducing their competitiveness. Non-tariff barriers, on the other hand, are measures that restrict trade without imposing a direct tax. Examples of non-tariff barriers include quotas, licensing requirements, technical barriers to trade, and other regulations that make it difficult for foreign businesses to access a country's market. The main difference between tariff and non-tariff barriers is that tariffs are a direct tax, while non-tariff barriers are more indirect regulatory measures.
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International marketing is the process of promoting and selling products or services to people in different countries. It involves understanding the cultural, economic, legal, and political differences between countries and adapting marketing strategies accordingly. International marketing requires companies to conduct market research, develop a global marketing plan, and make decisions about pricing, promotion, distribution, and product design. It also involves developing partnerships with other businesses, managing logistics and supply chains, and navigating the complexities of international trade regulations and agreements. The goal of international marketing is to maximize sales and profits in foreign markets while building brand awareness and loyalty across different cultures and languages.
The main difference between tariff and non-tariff trade barriers lies in the types of restrictions they impose on international trade.
1. Tariff: Tariffs are taxes or duties imposed by a government on imported goods. They increase the price of foreign goods, making them less competitive compared to domestically produced goods. Tariffs can be specific (a fixed amount per unit) or ad valorem (a percentage of the product's value).
2. Non-Tariff Trade Barriers: Non-tariff barriers encompass a wide range of measures used by governments to restrict or control imports. These barriers are not in the form of duties or taxes but can still hinder trade. Some examples include:
a. Quotas: Quotas limit the quantity of imported goods allowed into a country. They can either be absolute (a fixed limit) or selective (applying to specific countries or regions).
b. Import Licensing: Governments may require import licenses or permits, which can be burdensome to obtain. These licenses serve as a means of government control over the quantity or quality of imports.
c. Embargoes and Sanctions: Embargoes involve complete trade bans with specific countries. Sanctions are similar but often imposed as a response to political reasons, restrictions, or human rights concerns.
d. Technical Barriers to Trade (TBT): These barriers involve technical regulations, standards, or requirements that can make it more difficult for foreign products to comply and enter a market.
e. Subsidies: Subsidies can be provided by governments to domestic producers, creating an unfair advantage and distorting international trade.
f. Government Procurement Policies: Governments may favor domestic suppliers or impose specific requirements when purchasing goods and services, hindering foreign competition.
g. Intellectual Property Rights (IPR) Protection: Inadequate protection of intellectual property rights can discourage foreign companies from trading or investing in a country.
h. Currency Controls: Governments can impose restrictions on currency exchange rates or impose limitations on accessing foreign currencies, which can impact international trade.
Overall, while tariffs involve taxes or duties on imports, non-tariff barriers refer to a broader range of measures that governments can employ to restrict or control international trade.