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The Most Common Measures To Trade Is Tariff Measur
The Most Common Measures To Trade Is Tariff Measur
Tariffs raise the price of imported goods relative to domestic goods. A Tariff is
imposed upon imports to protect local industries and companies. Examples
are government imposed tariffs to protect domestic automobile industry, sugar
industry, cement industry and steel industry. Non-tariff measures, on the other
hand, includes all measures, other than Tariffs, the effect of which is to restrict
imports, or to significantly distort trade. A form of restrictive trade where
measures to trade are set up and take a form other than a Tariff. Non-tariff
measures also inlcudes quotas, levies, embargoes, sanctions.
3. A non-tariff barrier is a means of limiting trade that does not require the use
of tariffs. Quotas, embargoes, sanctions, and levies are examples of nontariff
barriers. Some countries often use nontariff barriers to limit the amount of
trade they conduct with other countries as part of their political or economic
policy. Non-tariff barriers are trade barriers that prohibit goods from being
imported or exported using strategies other than tariffs. Non-tariff trade
barriers, such as import licensing, pre-shipment inspections, rules of origin,
customs delayers, and other mechanisms that prohibit or limit trade, are
defined by the World Trade Organization (WTO). Non-tariff barriers are an
economic tactic used by developing countries to regulate the amount of trade
they perform with other countries. Countries base their decisions on the
availability of goods and services for import and export, as well as current
political relationships with other trading partners, when deciding on non-tariff
barriers to introduce in foreign trade. Developed countries which choose to
exclude other countries from additional tariffs on imported or exported
products in exchange for the creation of non-tariff barriers with a different
monetary impact.