Global Economy Essay Example | Topics and Well Written Essays - 2000 words

Global Economy - Essay ExampleEconomy such(prenominal) as economical reasons behind implementing various forms non- tariff lot encourageion and the structural pattern of Chinese outward abroad Direct Investment (FDI) will be answered.Trade barriers are the measures appointed by governments and other state-supported authorities for the purpose of making the imported goods and services less competitive as compared to locally produced goods. tax is a form of trade barrier that is imposed to re grim international trade import and trade activities lead to increase in the price level for consumers. In contrast, Non tariff barriers are imposed in order to control imports. The main hypothetical reason behind shifting from tariff to non-tariff protection measures is to protect the concern of developing countries, aid them to acquire funds for the purpose of running such economies and to support their languid industries to flourish (Kerr and Gaisford, 2007).Mainly six types of non tari ff protections processes can be experienced in a world(a) economy. Most important among these is specific limitation on trade such as import licensing requirement, fees, embargos, firm proportionate restriction on foreign domestic goods and minimum import price limits. Customs and administrative entry procedures also outline non tariff trade protection methods through the ways of anti-dumping practices, tariff classifications and strict documentation and valuation systems. Intergovernmental acceptance instruments for testing methods, standards, packaging, labelling and marking, government participation in international trade by the means of procurement policies, export subsidies, countervailing duties and domestic assistance programs are the other form of non tariff trade protections. Apart from all these, government imposes specific charges on imports prior to the importation takes place and other fees such as special supplementary duties, import credit discrimination, variable le vies and border taxes represents various forms of non