International Trade
Modern non-tariff measures 1. Import deposit schemes: this requires importers to deposit a certain amount with the central bank of the country. This makes importing more time consuming and more expensive and reduces the liquidity of the importing firm.
2. Voluntary Export Restrain (VER): it is an agreement between two countries where the government of exporting country agrees voluntary to restrict the volume of its exports of a certain good. Ex. Japan’s VER with USA in the export of motor cars.
3. Product standard regulations: A country can use strict health and safety regulations to limit imports. Goods can be rejected if they do not satisfy adequate standers
4. Complex custom procedures: complex customs procedures and paper work will cause unnecessary delay and increase the difficulty and cost of exporting.
5. Government contract policy: a government may have a policy of placing orders with domestic producers rather than foreign firms even if foreign goods are better or cheap.
6. Campaigns: a government may campaign the virtues (qualities) of buying domestic goods which in turn reduces the demand for the foreign goods.
Modern non-tariff measures 7. Import deposit schemes: this requires importers to deposit a certain amount with the central bank of the country. This makes importing more time consuming and more expensive and reduces the liquidity of the importing firm.
8. Voluntary Export Restrain (VER): it is an agreement between two countries where the government of exporting country agrees voluntary to restrict the volume of its exports of a certain good. Ex. Japan’s VER with USA in the export of motor cars.
9. Product standard regulations: A country can use strict health and safety regulations to limit imports. Goods can be rejected if they do not satisfy adequate standers
10. Complex custom procedures: complex customs procedures and paper work will cause unnecessary delay and increase the difficulty
2. Voluntary Export Restrain (VER): it is an agreement between two countries where the government of exporting country agrees voluntary to restrict the volume of its exports of a certain good. Ex. Japan’s VER with USA in the export of motor cars.
3. Product standard regulations: A country can use strict health and safety regulations to limit imports. Goods can be rejected if they do not satisfy adequate standers
4. Complex custom procedures: complex customs procedures and paper work will cause unnecessary delay and increase the difficulty and cost of exporting.
5. Government contract policy: a government may have a policy of placing orders with domestic producers rather than foreign firms even if foreign goods are better or cheap.
6. Campaigns: a government may campaign the virtues (qualities) of buying domestic goods which in turn reduces the demand for the foreign goods.
Modern non-tariff measures 7. Import deposit schemes: this requires importers to deposit a certain amount with the central bank of the country. This makes importing more time consuming and more expensive and reduces the liquidity of the importing firm.
8. Voluntary Export Restrain (VER): it is an agreement between two countries where the government of exporting country agrees voluntary to restrict the volume of its exports of a certain good. Ex. Japan’s VER with USA in the export of motor cars.
9. Product standard regulations: A country can use strict health and safety regulations to limit imports. Goods can be rejected if they do not satisfy adequate standers
10. Complex custom procedures: complex customs procedures and paper work will cause unnecessary delay and increase the difficulty