Types of NTBs

Question 1

Import quota: description and direct effects

Answer 1

quantitative limit on export, effects quantity

Question 2

voluntary export restraints (VER)

Answer 2

Quantitative limit on foreign exports (based on threat of import restrictions). government makes the export limit their own import

it affects the quantity of imports

Question 3

Tariff quota

Answer 3

Allows imports to enter the country at a low or zero tariff up to a specified quantity; imposes a higher tariff on imports above this quantity

it affects quantity, if the the tariff for the positional imports above the specified quantity is so high that is prohibitive, so that there are no imports above the specified quantity.

Question 4

government procurement

Answer 4

laws and government rules that favour local products when the government is the buyer

affects quantity and cost of importing

Question 5

local content and mixing requirements

Answer 5

require specified use of local labour, material or products

this affects quantity

Question 6

technical and product standards

Answer 6

discriminate against import by writing or enforcing standards in a way that adversely affects imports more than domestic products

it affects the cost due to the importing having to conform to the standards set by the government standard

Question 7

advance deposit

Answer 7

requires some of the value of intended import to be deposited with the government and allows the government to pay low or zero interest of these desposits

Question 8

importing licensing

Answer 8

requires importers to apply for approval for importing

affects cost, makes it uncertain to import

Question 9

quota effect on a small country

Answer 9

net loss