W9 NON-TARIFF TRADE BARRIERS

Question 1

what are examples NON-TARIFF TRADE BARRIERS?

Answer 1

IMPORT QUOTAS

REGULATIONS

ANTI-DUMPING

EXPORT SUBSIDY

Question 2

how do non-tariff barriers affect international trade?

Answer 2

Non-tariff trade barriers are restrictions or obstacles that can affect international trade flows without involving the imposition of tariffs or customs duties.
- they increase costs
- limit market access
- cause delays in customs
- create uncertainty

Question 3

what is an export subsidy?

Answer 3

an export subsidy is a financial incentive such as a grant, direct payment or tax reduction the government gives to domestic producers/exporters to make their exports more competitive in the international market.

Question 4

how is an export subsidy affecting the international trade?

Answer 4

it affects international trade because it manipulates the international market by giving an unfair advantage to subsidised goods and make things unjust for foreign competitors

Question 5

what is an import quota?

Answer 5

an import quota is a trade restriction which places a physical limit on the amount of products that can imported into a country at a specified time period. e.g. absolute limits on quantity and licensing systems - restricting imports protects domestic producers, encourages domestic production and helps fix trade imbalances.

Question 6

why are regulations negative for international trade?

Answer 6

it is bad because it imposes unnecessary burdens on foreign producers and it is a form of protectionism/protectionist tool

Question 7

what are regulations?

Answer 7

regulations are a set of measures set by the government to protect public health, consumers, safety and the environment.

Question 8

what is anti-dumping?

Answer 8

is the government efforts at decreasing the amount of foreign producers selling products abroad at a lower price as it brings the price down and messes up the domestic market. (by creating unfair competition)

Question 9

how does anti-dumping work to affect the international trade?

Answer 9

imposing additional import duties to offset the price difference (foreign producers were trying to create) = protects domestic producers from having to lower the prices to compete

Question 10

Reasons why the UK and EU relationship might benefit from no tariffs after Brexit:

Answer 10

• economic integration
• costs savings
• consumer benefits
• supply chain efficiency
• increased market access
• higher competitiveness