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Trade barriers are the obstuction of free flow of services and goods made  by the go vernment po licies and measures as there is number of free supporter s and promotors are exist. Due to thevarious trade barriers existing internat ional trade is characterised and the main objectives whichare imposing the trade barriers are given below. •Protecting domestic industries or other economical sector from international competitio n. •Protecting in opposition to clearance. •Protecting native developments and research. •Saving the country foreign exchange resources •Balancing the financial status is more favourable. •Reducing the government mobilise revenue and noticable consumption. The effect of trade barriers: The International Business is an economically prosperous, imposing barriers to such exchanges,and fully realize the economic benefits of trade to prevent the country from the need to reducewelfare. Import - protected areas on the allocation of scarce resources as on an object to theallocation of resources for industrial tariffs, quotas, non-tariff barriers can lead to non-trade protection and industry competition in terms of conservation, more efficient production business process flow to reduce the export flow of imports, up words, less production, less investmentrequired can reduce. Obviously, the export sector activities protected by import competition, the benefits will be lost Trade barriers Vs Free trade: impactsAdvantages  Free trade develops a kind of trust between two or more nations due to which free movementof people is possible.  Free exchange of goods is also possible due to which economy of scale is brought downwhich is an advantage for trading.  The barriers or borders can be moved by shrinking some nations into a union and the work division is also possible.Disadvantages  Exchange of goods without any kind of benefits to the government of the nations.  Industries which are weak in the market will not be able to compete with the giants.  

Trade barriers are the obstuction of free flow of services and goods made by the government policies and measures as there is number of free supporters and promotors are exist

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Page 1: Trade barriers are the obstuction of free flow of services and goods made by the government policies and measures as there is number of free supporters and promotors are exist

8/14/2019 Trade barriers are the obstuction of free flow of services and goods made by the government policies and measur…

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Trade barriers are the obstuction of free flow of services and goods made by the government policies and measures as there is number of freesupporters and promotors are exist. Due to thevarious trade barriersexisting international trade is characterised and the main objectives

whichare imposing the trade barriers are given below.

•Protecting domestic industries or other economical sector frominternational competition.

•Protecting in opposition to clearance.•Protecting native developments and research.•Saving the country foreign exchange resources•Balancing the financial status is more favourable.•Reducing the government mobilise revenue and noticable consumption.

The effect of trade barriers:The International Business is an economically prosperous, imposing barriers to suchexchanges,and fully realize the economic benefits of trade to prevent the country fromthe need to reducewelfare. Import - protected areas on the allocation of scarceresources as on an object to theallocation of resources for industrial tariffs, quotas,non-tariff barriers can lead to non-trade protection and industry competition in termsof conservation, more efficient production business process flow to reduce the exportflow of imports, up words, less production, less investmentrequired can reduce.Obviously, the export sector activities protected by import competition, the benefitswill be lost 

Trade barriers Vs Free trade: impactsAdvantages• 

Free trade develops a kind of trust between two or more nations due to which freemovementof people is possible.• 

Free exchange of goods is also possible due to which economy of scale is broughtdownwhich is an advantage for trading.• 

The barriers or borders can be moved by shrinking some nations into a union and thework division is also possible.Disadvantages• 

Exchange of goods without any kind of benefits to the government of the nations.• 

Industries which are weak in the market will not be able to compete with the giants.

• 

Page 2: Trade barriers are the obstuction of free flow of services and goods made by the government policies and measures as there is number of free supporters and promotors are exist

8/14/2019 Trade barriers are the obstuction of free flow of services and goods made by the government policies and measur…

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Local economic crisis strike the whole world.• Off shoring

Examples for trade barriers of South Africa: South Africa is considered as a middle income country because it has

divorce industrial sector and has GDP per capital of $3000. There is great between production and export pattern in southAmerica as the export pattern has very narrow.Mineral commodities contribute a lot to theexport of South Africa on one hand and onthe other hand South Africa export wide range of domestic products.Gold wasconsidered as a foreign earner but it has declined in recent year and othercommoditiesare gaining momentum. During 1988 gold contribution was 39.7% butduring 1995 it went downto 19 %. 25 % contribution is made by manufacturing andagriculture accounts for only 10%minerals sectors play an important role in theSouth African economyAs it is main source of foreign exchange and text revenue.Mining effect environment very badlywith pollution. Mineral sector contribution inSouth Africa export is 40% of total export in thecountry. Other sectors of the countryhave their own impact on the environment.

Example of India Trade Barriers:If we look at India’s economic growth it has grownenormously over the last decade as comparedto the other developed countries. GDPgrowth rate of the India was annually noted as 6 % on anaverage over the last fiveyears where it was being low in year 1997 -1988 during the economic crisis in Asiaand price fluctuation in petroleum sector. But in after the crisis Indian economy

hasgrown in subsequent two years, which is the result of the tradeliberalization and structuralreformation of financial strengths. By looking at theeconomic competitions amongst developedcountries and threats to economic growthIndia has decided to grow at the rate of the 7 to 9% ascompared to earlier rate of 5.4during the year 2001 -02. In order to achieve the targeted growthrate Indiangovernment has focus on the relationship b etween the economic growth &Trade.They have come across the several changes in the trade policy, removed theimports restriction,cut down the tariff and reduction in the export restriction