This website uses cookies to ensure you have the best experience. Learn more

Consequences Of Trade Restrictions And Tariffs

706 words - 3 pages

Consequences of Trade Restrictions and Tariffs

How does imposing trade restrictions affect a country's macro economic
objectives?

     Nowadays all countries need to trade between themselves. Countries
always lack of some type of good and the only way they can get them is by
importing them from other countries which do produce the desired goods. However,
countries many times import products they are able of producing and now, this
isn´t a matter of need; it´s a matter of taste in order to give the consumers
the possibility to choose.

     Both imports and exports contribute, in different ways, to the
development of a certain economy, for example the Peruvian one. Nowadays, Peru
has an open economy which allows importing and exporting. When a country imports
any product it can be because it doesn´t produce it or because it want´s to give
greater variety to certain areas of the market. This last case should be like a
stimuli for national producers to produce more and with a better quality and to
find ways of having lower costs of production. This aims come to light because,
as foreign products enter the market, they may be of a better quality and even
cheaper than the national ones. Now, the consumers will have more possibilities
to choose from and, it is very probbable that they will choose the cheaper and
brand new products. So, if national producers don´t do anything in order to
improve thier products, then they will be in danger of going to bankruptcy. As a
result of this, the national products have to seek, as I said before, for
cheaper costs and better products.

     When this occurrs, then national products are ready (or at least have
more possibilities) to compete in international markets. Supposedly, now they
should have a better quality, they should be cheaper and so, they are ready to
be exported. When products are sold at international markets, then this brings
more money into the peruvian economy; as exports are like the salary of a
country (the most important source of money), then this is very positive for the
peruvian economy because we can say that the national income has increased.

     So, we have seen how having imports and exports are very benefitial for
any country. However, countries many times apply...

Find Another Essay On Consequences Of Trade Restrictions And Tariffs

General Agreement on Tariffs and Trade (GATT), World Trade Organization (WTO) and Jordan's benefits in becoming a member

1447 words - 6 pages IntroductionGATT is the only global international organization dealing with the rules of trade between nations, which is known today as The World Trade Organization (WTO). At its heart are the WTO agreements, negotiated and signed by the bulk of the world's trading nations and ratified in their parliaments. The goal is to help producers of goods and services, exporters, and importers conduct their business.The WTO basic functions:* Administering

Define economic globalization and describe its consequences to developing countries in terms of trade and investment

865 words - 3 pages Define economic globalization and describe its consequences to developing countries in terms of trade and investment. Your answer should integrate the reaction of your country to the issues of economic globalization. (about 800 words).Introduction:-Probably the most important aspects of globalization is the economical one, in this report economic globalization will be define with the discussion of the nature and the limits of economic

‘In the assumed absence of transport costs and trade restrictions, perfect commodity arbitrage insures that each good is uniformly priced (in common c

3107 words - 13 pages profit, investors may not be interested in arbitrage opportunities, which subsequently correct the pricing differences and restore LOOP. For instance, transaction cost may prohibit arbitrage. Even in the assumption of the absence of transport cost and trade restrictions, if all the total associated transaction cost is higher than the profit from the arbitrage, it is highly unlikely that rational investors will participate in arbitraging activities

The Costs and Consequences of American Empire

1335 words - 5 pages Blowback: The Costs and Consequences of American EmpireBy, Chalmers JohnsonChalmers Johnson in his book, Blowback: The Costs and Consequences of American Empire, analyses chronically the effects of foreign policies the United States pursued during the Cold War and into the present day. He especially considers the social and economic ramifications of military and diplomatic policies the United States implemented in East Asia.He challenges the

Cause and Consequences of urbanization in Scotland

1545 words - 6 pages Laurie Ann Campbell History A Learning Outcome 1 Cause and Consequences of Urbanisation This essay will explore relevant cause and consequences of urbanisation in Scotland from 1700-1860. A dictionary-defined term would be "the social process whereby cities grow and societies become more urban."(1. 30/08/2005). Scotland went through huge political and economical changes from the 1700's onwards. The country went from being a rural, agricultural

Causes of Brain Trauma and their Consequences

1624 words - 7 pages WOMEN`S UNIVERSITY IN AFRICA Addressing gender disparity and fostering equity in University Education INTAKE 13 GROUP NAMES : Mercyline Soko W130140 Idi C. Kasu W130244 TITLE OF ASSIGNMENT: Examine causes of brain trauma and their consequences. PROGRAMME : BSc (Hons) in Psychology COURSE TITTLE : Psychobiology DUE DATE : 10 April 2014 LECTURER’S NAME : Mrs D. Machando SESSION : Evening SEMESTER : 2:1

The Causes and Consequences of Elder Abuse

1755 words - 7 pages This essay will begin by giving a definition of elder abuse and it will then go on to briefly explain elder abuse. It will then move on to discuss the causes and consequences of elder abuse. It will then outline the ways in which policy and practice has responded to the problem of elder abuse since the protection of our future: Report of the working group on elder abuse was published in 2002. It will then conclude by evaluating these responses

Causes and Consequences of the Reformation

1039 words - 4 pages Causes and Consequences of the ReformationThere were several causes of the Reformation. Some of them were short-term causes and others were long-term causes. One of the long-term causes of the Reformation was that many people thought that the Church was not following the Bible. For example, many people were unhappy with the idea of indulgences. Indulgences were gifts that people gave to the Church so their sins would be forgiven. In 1517 Luther

Causes and Consequences of Marital Breakdown

884 words - 4 pages Helga Kissová, 3ESANThe Causes and Consequences of Marital BreakdownMarriage is a complex interpersonal relationship. Among the reasons for marriage are emotional, financial, spiritual, and religious ones. In some religions marriage is considered to be a sacred bond between a man and a woman and to break it up is viewed as a blasphemous act. However, nowadays divorce is becoming an everyday process and people do not even blink if a

The Causes and Consequences of Global Warming

859 words - 3 pages hurricanes, and melting of ice-burgs have been increasing. Many scientists have agreed that that global warming is in fact still occurring as we speak. In the article "Global Warming: Confronting the Realities of Climate Change” it states that the signs are clear. The earth’s temperature has increased over the years. It has been shown and proven that global warming is still in effect because the consequences of this problem are still increasing

Dangers and Consequences of Genetic Engineering

1195 words - 5 pages Dangers and Consequences of Genetic Engineering Genetic Engineering will be deadly. The harmful effects of this gene manipulation will not be discovered for years, and it will be too late to reverse the damage. The tools of genetic engineering are natural substances that control biochemical reactions that work like chemical scissors and glue, cutting and pasting DNA molecules and sticking them into the DNA of

Similar Essays

Common Arguments For And Against Trade Restrictions

497 words - 2 pages Common Arguments For and Against Trade RestrictionsWhat are some of the common arguments for and against trade restrictions? Choose a position and describe why you think it is valid. Respond to a classmate who has selected a position that is different from yours. Did they provide valid rationale for their position? Why or why not?Arguments for trade restrictions include but are not limited to:•Trade restrictions protect domestic (home

General Agreement On Tariffs And Trade In E Commerce

4361 words - 17 pages General Agreement on Tariffs and Trade in E-Commerce The US is seeking to extend the duty-free status of international online transactions to protect the development of global electronic commerce, the Clinton administration said yesterday. Susan Esserman, deputy US trade representative, said the US wanted the World Trade Organization to agree "at the earliest possible date" to extend the current moratorium on customs duties for

Free Trade, Countries With The Highest And The Lowest Trade Tariffs

579 words - 2 pages was 17.288.000 in the same time weighted average tariff was 3,3%. The following charts illustrate relationship between welfare (as a GDP per capita) and weighted tariffs for 5 countries with the highest and 5 with the lowest tariffs:We can notice a relationship between GDP/Capita and trade tariffs. The higher GDP/Capita, the lower trade tariffs and vice versa. Most of the developing countries are imposing high tariffs rates to protect their own

Trade Restrictions And Hong Kong's Textile And Clothing Industry

3324 words - 13 pages Most textiles and clothing worldwide were exported from China or Japan, above all Hong Kong is one of the most important centres. Quota restrictions regulated the international trade since decades. In January 2005, after the complete phase-out of the old quota restriction, price dumping was expected.1.1 Long-Term Arrangement Regarding International Trade in Cot-ton Textiles LTAIn 1962, the Long-Term Arrangement Regarding International Trade in