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International Business II Unit Notes
International Business II Unit Notes
INTERNATIONAL BUSINESS
Referred by Subba Rao
TARIFF BARRIERS
(1) PRICE BASED BARRIERS: Price based barriers are also known as Tariffs. Tariffs are the taxes imposed on imports. Tariffs are of two types they are (A) Specific Tariffs and (B) Ad Valorem tariffs. (2) QUANTITY LIMITS / IMPORT QUOTAS: Quantity limits are also known as Quotas. An import quota is a direct restriction on the quantity of some goods that may be imported into a country. (3) CARTELS : Cartels are agreements between producers located in different countries or between governments of different countries to restrict competition. They normally control prices and they are often accompnied by output & Investment quotas for making price control effective.
TARIFF BARRIERS
4. FINANCIAL LIMITS & FOREIGN INVENSTMENT CONTROLS: Financial limits are restrictive monetary policies designed to control capital flow .Countries possess restrictions on what foreigners may own in their country.
(C) INSPECTION:
Inspection reveals whether imported items are consistent with those specified in the documents & whether such items require any licenses. It prevents Prohibited articles.
(4) Employment opportunities (5) Rapid Technological innovations and development is possible due to pooling financial resources for heavy investment. (6) The elimination or reduction of tariffs & barriers reduces the import duties and thereby reduces the prices of the products / services. consumer gets the advantage of lesser price.
These negotiations of the conference resulted in the General Agreement on Tariffs and Trade(GATT) among the participating countries. Thus, GATT has its origin in 1947at a conference in Geneva.
TRADE IN SERVICES: Trade in services like, Insurance, Travel, Tourism, Hotel, Banking, Transportation, mobility of human resources etc., has been for the first time, brought within the purview of GATT.
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Ministerial Conference is the highest hierarchical level in the Organization structure. All the member countries of WTO are the representatives of the ministerial conference. It has the authority to make decisions on all matters relating to multilateral trade agreements. The ministerial Conference meets at least once in two years. Thus the Ministerial Conference is the policy & strategy making body. It gets the policies & strategies implemented & executed by the next level, i.e. General Council.