Import tariff
Select and evaluate a specific tariff or non-tariff trade barrier. Explain the impact of the tariff or non-tariff trade barrier on the global trading system. Then identify a country that is currently impacted by the specific tariff or non-tariff trade barrier. How is the country impacted by the barrier? As always, please provide references to support your efforts.
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Import duties are the tariff trade barrier selected for this assignment. A country often levies import duties on products imported from other countries in order to protect the local businesses or industries. As a result, consumers are unable to buy high quality imported products at competitive prices owing to such import duty. Exporters from other countries are also discouraged to sell their products in such countries as it makes their product less competitive in foreign markets.
Let us evaluate the case of edible oil import in India. India is the largest importer of vegetable oil. However, in order to protect the domestic manufacturers, the government raised import taxes and thus, and made it difficult for foreign players to sell their products in India. Consumers are also at loss because it denies them pricing benefits, which can occur as a result of free competition between global and local manufacturers.
Source: http://in.reuters.com/article/2014/12/25/india-import-duty-idINKBN0K30GQ20141225
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