Tariff and Non-Tariff Barriers

Quotas can be in terms of volume or value permitted. Sometimes the domestic government sells licenses to foreign firms they in t... ... middle of paper ... ...eed to protect it and can trade on the international stage. The drawback of this is that the industry will never reach full efficiency because it’s free of the disciplines of foreign competition. It also protects against dumping this is when the sale of a good is below the cost of production. In the short-term consumer’s benefit from low prices of foreign goods, however in the long - term domestic businesses will go out of business resulting in the foreign firm having the monopoly over the market.

Other countries that are suitable to perform the jobs needed may demand less money to finish the jobs. The main purpose of this paper is to explain why businesses should outsource to other countries that can do the work they need at a cheaper cost. Many Americans blame outsourcing for the current unemployment rates, even though the amount of Americans on financial assistance programs that are currently unemployed and are not looking for a job is high. This paper is intended for those that blame outsourcing on the unemployment rates and for American businesses that want to provide quality goods at a reasonable cost for American consumers. This paper will inform the audience on the benefits of why businesses should outsource.

Companies who provide cheaper made products, can cause a deficit for any country by flooding their economy with these exports. Fair trade prevent this and provides developing countries with the opportunity to provide merchandise that is not readily provided to the consumer. Fair trade helps provides jobs in developing countries and protect them from the abuses of monopolization. To solve this problem, there must be a fair exchange for goods and services. If these practices are allowed to continue, we as the consumer, will be paying higher prices at the stores.

Gene Marks, does it becaus... ... middle of paper ... ...m by taking away jobs from our communities it is supposed to help us in the long run. Production workers in the United States want more money paid to them than what company owners want to pay. This forces owners to send work overseas for cheaper production costs, which has good and bad sides. The real question however, remains unanswered as not whether or not outsourcing is good or bad. The real question remains, when we outsource jobs to foreign countries are we selling more than just our jobs to other countries?

The purpose of this quota is different from others as purpose is to moderate the international competition and allow less effective domestic producers to sell their goods that would otherwise not be sold due to cheaper and better similar products available through import. The revenue effect of an export quota is captured by the foreign exporting company or its government (156). Domestic content requiremen... ... middle of paper ... ...rket they need the benefit of the export quota. The export quotas are voluntary in the sense that they are an alternative to more stringent trade restraints that might be imposed by an importing nation. An export quota reduces the supply of an imported product, which leads to higher prices in the importing nation.

“The tariff also helps protect jobs in the industry that has eliminated the foreign competition but a negative impact is felt because it causes the consumer to pay more for a product that is imported” (Hill, 2004). If a country it prone to levy tariffs on items that an organization may need, it would increase the risk of doing business while located in that company. By having a country manufacture or produce product that can be done for less elsewhere is not a wise utilization of resources and in turn harms global trade. Tariff is a tax applied to an import and is one of the oldest trade policies in effect. This tax is generally revenue for the host country’s government.

This will allow those farmers in developing countries to sell their products at a higher price, giving them profit and eventually be able to make a living for them and their families. Developing countries’ domestic companies must be protected so their prices will be cheaper than imported products, encouraging customers to purchase them. Next, the WTO cannot be in favor of companies over health. Their egos cannot overthrow their own realizations of how somebody’s health is more important than money. In my opinion, trade has definitely differed to what philosopher Edmund Burke once perceived it to be.

The government imposes tariff to gain more of revenue and to restrict trade, tariff helps indirectly to the competitors based in the region as it reduces the number of i... ... middle of paper ... ...mployment growth as more firms are invented globally the more employees are needed for the specific firm to work. Free trade even allows the national economic growth to increase rapidly as per firms are built in to work out and provide more of services and goods in the region with trading around the specific nation even increases the GDP for that particular nation. Free trade has few disadvantages such as free trade allows unlimited trade between countries where it would be a mess without any revenue to the nation, despite the number of competitors of a specific product increases as in consumers would look into more of imported goods thinking that is better and it would lead to conflicts between competitors. Free trade could lead to pollution / diseases effects as other nation’s products and services which are not suitable for the specific nation might be passed on.

Effects of industrial regulation to the market: The market reacts differently depending on the goal of the regulatory goals and objectives. If the aim was to protect the consumer by preventing the traders from hiking prices, then the traders might reiterate by reducing the level of production and thus creating a shortage. This usually happens if the producers and the traders were not necessarily making huge profits If the regulations were put in place after an agreement between the various players in the market, then it will be accepted. As a result products will be sold in a fair and reasonable price hence increasing their demand. Consequently the producers will produce more to satisfy the huge mar... ... middle of paper ... ...commissions includes: bureau of alcohol and tobacco, and fire arms which regulate abuse and misuse of the substances; equal employment commission which ensures the employment process is not biased; federal highway administration which ensures proper maintenance and good conduct on the highways; federal maritime commission which promotes safety in water travel; and federal election commission which promotes free and fair elections (Wikinvest).

Due to fluctuations in currency prices, it is sometimes possible for foreign exporters to charge unnaturally low prices for their products. This is called dumping and will greatly reduce the sales of the domestic competitor. A tariff can be added to artificially raise the price of the foreign product. While this comes at the expense of consumers who wish to buy the cheapest products, it benefits American businesses and thus can indirectly benefit cons... ... middle of paper ... ...edcontent.com/article/1362775/tariffs_import_quotas_and_exchange.html?cat=3. Accessed 03/02/10 [3] Mike Moffatt.