Tarrif Barriers

Professor Daly
International Marketing 58010
January, 24 2011
Assignment A: Tariff Barriers
There are two different types of barriers in the export and import area: the tariff and the non-tariff barriers.   The non-tariff barriers limit the import of some specific products by founded quotas or quality standards that a foreign companies should respect to launch a product.   An international organization: the World Trade Organization has been created in order to regulate and control those barriers. The principal goal of those types of barriers is to protect and encourage the domestic production and on the other hand to increase their incomes. Although there are positive impacts on the country which import a product, there are also some negative impacts on the international business because it asks investments; consequently, it is difficult for small companies to compete in these markets.   To illustrate a non-tariff barrier, the CE norm is a good example because it is a quality standard require on a huge number of different products such as toys or sun-glace.
Barriers are a solution for countries to limit the import of specific products.   There are different types of barriers like tariff and non-tariff barriers that are a special goal.   First of all, the tariff barriers can be defined as taxes apply to import products.   Governments add taxes the import products in order to support the local products.   Moreover, the impact on the country revenue is high as well. Indeed, it increases the country Growth Domestic Product.   The non-tariff barriers are all the rules or country polices, like norms, quotas, quality standard, import license … that a company has to respect or follow before launching its products on a new market.   Despite the fact that the goal is the same that the tariff barriers, this type of limits have no consequences on the country revenue because those regulations are not in the form of money.   In order to regulate and controlled those barriers,...