Professional Documents
Culture Documents
Trade Barriers
What are trade barriers?
Why country seek to practice trade barriers?
World has never been practicing free trading system. Many countries still
believe free trade hinders them. Russia had hold its membership from WTO
till 2011, but eventually it took membership and been a 156 th member in
2012. Trade barriers are embargos and restrictions for business.
Country seeks to practice trade barriers for the following reasons :
-To ensure national security and supply
-To correct a balance of payments deficit
-To protect Domestic industries against competition of foreign goods
-To generate government revenue from tariffs on imports.
-To protect national heritage and culture.
tariffs
Price effect
Ad Valerom duty,Specific Tariff,
Compound tariff, Countervailing Duty,Anti
Dumping duty
Price
effect
Non
tariffs
QTY effect
Tariff Barriers
As so far as we come to know Tariff barriers are imposed on the name of
protection of domestic business and to raise government revenues.
In other words tariffs are imposed on receiving goods of the countries so
that these goods would be expensive and domestic products could battle
well.
Various types of Tariff Barriers have been discussed below :
1) Import duties
When government charges certain money on receiving goods or say
importing goods it is known as import duties.
Various types of Import duties are as follows :
Monetary forms of subsidies are given as cash assistance where as nonmonetary forms of subsidies are counselling services,coaching,informing
about developments,sponsoring trade exhibitions abroad, and establishing
foreign contacts,assisting in signing MOU between foreign partners and so
on.
improve BOP
control on unessential Imports
import essential Products
control the capital outflow
maintain exchange rate
http://www.imf.org
The Internation
al
Monetary Fund
The international
Monetary fund had been
conceived During Bretton
woods Conference in
1944 and it had started
its operations from 1947.
IMF,has headquarters in Washington D.C. and till date it has 184
members country. Currently IMF has been running by lady Chritine
Lagarde from France after Dominique Staruss Kahn has resigned amidst
through scandals.
IMF had been created not to repeat Depression that of like 1930s. The
29 member countries of UN, signed Articles of Agreement in 1945 and it
became specialised body.
IMF has seen European Managing director since its inception .It is the
central Institution of the International monetary system .The IMF helps
promote the world economic growth and raising the standard of living.
Advices on
Policies and
Global
overlooking
Technical
Assistance
and
Training
Lending
in Hard
Currency
Strength
ening IM
and
Financial
system
IMF organizations
Board of Governors
Executive Board
International
Monetary and
Financial
Committee(BOG +
WB
Managing
director is the
chairman of 24
executive
Directors
Development
Committee
(BOG + WB)
Objectives of IMF
-Promotes cooperation and Global Business
-Creates stability in exchange and discourages Competitive exchange
-Helps to build multilateral system of payments, avoids restrictions,
demolishes unparalleled system
-Fosters International trade and creates Employment opportunity
-Grants temporary financial assistance to member countries to maintain
BOP
-Maintains orderly exchange rate system
The IMFs five largest shareholders the United
States,Japan,German,France, and the U.K along
with China,Russia, and Saudi Arabia.
IMF Quota
At the time of country receives membership from IMF, It has to deposit
some wealth , on behalf of what country receives loan facility.
This is called IMF quota, according to richness of country the wealth to
be deposited get vary.
This IMF quota also holds voting power and amount to be received , this
is called Special drawing rights(SDRs) .
Regarding the major countries Voting powers or holding in the total
quota,USA holds the highest of 17.08 %, Japan 6.13% and our country
has 0.04 %.
World
Bank
Introduction
Nepal became a world bank member on September 6, 1961 the same
date when it took membership from IMF as well. Its relationships with the
world Bank is limited those with IDA and IFC.
TheWorld Bankis aninternational financial institutionthat
providesloans todeveloping countriesforcapital programs.
The World Bank's official goal is thereduction of poverty. According to the
World Bank's Articles of Agreement , all of its decisions must be guided by
a commitment to promoteforeign investment,international trade, and
facilitatecapitalinvestment.
The World Bank differs from theWorld Bank Group, in that the World Bank
comprises only two institutions: theInternational Bank for Reconstruction
and Development(IBRD) and theInternational Development
Association(IDA),
whereas the latter incorporates these two in addition to three
more:International Finance Corporation(IFC),Multilateral Investment
Guarantee Agency(MIGA), andInternational Centre for Settlement of
Investment Disputes(ICSID).
This is one of the major World bank group which helps to foster foreign
direct investment in countries.
There always a risk for companies to put money into business. In the
case of international business many MNCs are so careful while investing
in cross border nations. Here in this case MIGS helps these companies to
invest in new countries. MIGA enables and assures companies for their
guarantee in prosperity. MIGA works directly with the government and
presses them to issue business friendly laws and acts which garners FDI.
MIGA also provides technical assistance and advisory services to help
countries strengthen the capacity of investment promotion
intermediaries and distribute information on investment and capital
related opportunities.
www.adb.org
Asian
Development
Bank
Introduction
ADB is a regional development bank established on 22 August 1966 to
facilitate economic development of countries in Asia. The bank admits the
members of the United Nations Economic and Social Commission for Asia
and the Pacific.
From 31 members at its establishment, ADB now has 67 members - of
which 48 are from within Asia and the Pacific and 19 outside. ADB was
modeled closely on the World Bank, and has a similar weighted voting
system where votes are distributed in proportion with member's capital
subscriptions.
At present, both the United States and Japan hold 552,210 shares, the
largest proportion of shares at 12.756% each. China holds 228,000 shares
(6.429%), India holds 224,010 shares (6.317%), the 2nd and 3rd largest
proportion of shares respectively
Nepal holds 5202 shares, i.e.,0.15% of the total. The ADB lending to Nepal
started from the year 1969. Nepal is the 27th largest shareholder among
regional members and the 35th largest among the overall members.
Objectives of ADB
-Eradicating Poverty
-Encouraging Economic
prosperity
-Assisting in HR
development
-Empowering Women
-Promoting stable Natural
sector and developing
agriculture arena.
ADBs Role in Nepal
-Nepal has received total cumulative lending of $2.63 billion
-ADBs nine focus areas are Agriculture,Education,Water
supply,transport,information and communication,finance,energy,public
private sector mgmt,climate change, Social protection
ADB looks after governments various projects and scrutinizes and
invests in suitable projects and aware government of poverty level and
presses government to work in favor of them and works in specialized
areas.
This way the conceived idea of ITO been changed into GATT agreements
and later it emerged as WTO (world trade organization.
WTO
All Green coloured countries are
WTO members
WTO members
EU and WTO members
Observers
Formation
January 1, 1995
Headquarters
Membership
Officiallanguages
Director-General
Pascal Lamy
Budget
Staff
640
Website
wto.org
Introduction
The World Trade Organization (WTO) is an organization that intends to
supervise and liberalize international trade. The organization officially
commenced on January 1, 1995 under the Marrakech Agreement,
replacing the General Agreement on Tariffs and Trade(GATT), which
commenced in 1948. The organization deals with regulation of trade
between participating countries; it provides a framework for negotiating
and formalizing trade agreements, and a dispute resolution process
aimed at enforcing participants' adherence to WTO agreements which are
signed by representatives of member governments and ratified by their
parliaments. Most of the issues that the WTO focuses on derive from
previous trade negotiations, especially from the Uruguay Round (1986
1994).
Nepal is the 147th member , and Cambodia the 148th. Nepal has the
Privilege of being the first LDC to have entered WTO through the
Accession Process under Article 12.
Regional Groupings :
EUROPEAN UNION
total
4,324,782km2(7th
1,669,807sqmi
Water(%)
3.08
2012estimate
503,492,041(3rd)
Density
116.2/km2
300.9/sqmi
Population
GDP(PPP)
2011estimate
Total
$15.821
trillion[6](1st)
Per capita
$31,607[6](15th)
GDP (nominal)
2011estimate
Total
$17.577
trillion(1st)
Per capita
$35,116(14th)
Gini(2010)
30.4[8](medium)
HDI(2011)
0.856(veryhigh)(1
4th)
Currency
Euro () (EUR)
Used in the 17
countries of the
eurozone and by
the EU's
institutions. The
other member
states and
territories use other
currencies.
Time zone
(UTC+0 to +2)
-
Internet TLD
Summer(DST)
(UTC+1 to +3)
.eu[
EUROPEAN UNION
The European Union (EU) is an economic and
political
union of 27 member states which are located primarily
in
Europe. The EU traces its origins from the European Coal and
Steel Community(ECSC) and the European Economic
Community (EEC), formed by six countriesin 1951 and 1958
respectively. The Maastricht Treaty established the European Union
under its current name in 1993.The latest amendment to the constitutional basis
of the EU, the Treaty of Lisbon, came into force in 2009.
]
Important institutions of the EU include the European Commission, the Council of
the European Union, the European Council, the Court of Justice of the European
Union, and the European Central Bank. The European Parliament is elected every
five years by EU citizens.
The EU has developed a single market through a standardized system of laws
which apply in all member states. Within the Schengen Area(which includes 22 EU
and 4 non-EU states) passport controls have been abolished. EU policies aim to
ensure the free movement of people, goods, services, and capital, enact
legislation in justice and home affairs, and maintain common policies on trade,
agriculture, fisheries and regional development. A monetary union, the eurozone,
was established in 1999 and The EU is represented at the United Nations, the
WTO, the G8 and the G-20.
With a combined population of over 500million inhabitants,[or 7.3% of the world
population,the EU, in 2011, generated a nominal gross domestic product(GDP) of
17.6 trillion US dollars.
NAFTA
North Atlantic Free Trade Area
Administrativecenter
Mexico City,
Ottawa, and
Washington, D.C.
English
Spanish
French
Languages
Canada
Mexico
United States
Membership
Establishment
Formation
December 22,
1995
Total
21,850km2(1st)
8,410sqmi
Water(%)
7.4
2010estimate
457,282(3rd)
Density
25.1/km2(195th)
54.3/sqmi
-
Area
Population
2010
(IMF)estimate
GDP(PPP)
-
Total
$1,617.989
billion(1st)
Per capita
$39,625(4th)
2010
(IMF)estimate
GDP (nominal)
-
Total
$17,271.000
billion(1st)
Per capita
$37,769(21st)
HDI(2011)
0.868[1](veryhigh
Introduction
SAARC(south asian association
for regional cooperation)
Comprises eight countries of south asia
Afghanistan,
Bangladesh,Bhutan,India,Maldives,Nepal,Pakistan and
Sri Lanka. It was established on 8 December,1985.
Afghanistan joined SAARC in April 2007.
Saarc Provides a platform for the people of south asia to work together in a
Spirit of friendship,trust and understanding. It aims to promote their welfare
And to improve their quality of life.
Objectives of SAARC
-Promote Welfare and improve quality of life of people of this region
-Accelerate economic growth,social,progress and cultural development in the
Region
-Promote and strengthen collective self reliance
-Contribute to mutual trust,understanding
-Promote active collaboration and mutual assistance in the economic,social,
cultural,technical and scientific fields.
SAARC in Brief
Afghanistan
Bangladesh
Bhutan
India
Maldives
Nepal
Pakistan
Sri Lanka
Headquarters
Official languages
Demonym
Kathmandu, Nepal
English
South Asian
8 Members[show][show]
Afghanistan
Bangladesh
Bhutan
India
Maldives
Nepal
Pakistan
Sri Lanka
9 Observers[show][show]
Australia
China
European Union
Iran
Japan
Membership
Government
-
Chairman
-
Establishment
Area
Secretary General
Total
Population
-
2009estimate
Density
GDP(PPP)
-
Total
-
Currency
Time zone
Per capita
Organization
Mohammed Waheed
Hassan Manik
Ahmed Saleem
December 8, 1985
5,130,746km2(7th
1,980,992sqmi
1,600,000,000
304.9/km2
789.7/sqmi
2009estimate
US$ 4,382,700
million(3rd1)
US$ 2,779
See footnote 2
(UTC+4 to +6)
Website
www.saarc-sec.org
If considered as a single entity.
ASEAN
Association
Of South
East Asian
Nations
Association of south east asian nations was formed in 1967. It has ten members as
follows: Brunei,Cambodia,Indonesia,Laos,Malaysia,Myanmar,
Philipines,Singapore,Thailand,Vietnam
Objectives of Asean
-To expand econommic,social,cultural administrative and technical cooperation.
-To accelerate economic progress and stability of the region
-To strengthen regional peace and security
Asean has a preferntial trading arrangement system. But the system covers only
about 5% of ASEAN trade. In 1992 ASEAN free trade area (AFTA) was
established. A common effective preferential tariff has come in force. Intra- ASEAN
trade and investment has increased.
ASEAN covers a land area of 4.46million km, which is 3% of the total land area of
Earth, and has a population of approximately 600 million people, which is 8.8% of
the world's population. The sea area of ASEAN is about three times larger than its
land counterpart. In 2010, its combined nominal GDP had grown to US$1.8trillion.
If ASEAN were a single entity, it would rank as the ninth largest economy in the
world, behind the United States, China, Japan, Germany, France, Brazil, the United
Kingdom, and Italy.
ASEAN
-
Secretary-General
Surin Pitsuwan
ASEAN Summit
Presidency
Cambodia
Bangkok Declaration
8 August 1967
Charter
16 December
2008
Total
4,479,210.5km2
2,778,124.7sqmi
2010estimate
601 million
Density
135/km2
216/sqmi
Establishment
Area
-
Population
GDP(PPP)
2010estimate
Total
US$ 3.084trillion
Per capita
US$ 5,131
GDP (nominal)
2010estimate
Total
US$ 1.800trillion
Per capita
US$ 2,995
HDI(2011)
0.625[