Governmental actions at times are designed to discourage imports and block market access. Why do governments want to curtail imports? Explain some of the barriers that are placed to discourage imports

Question

What will be an ideal response?

Answer 1

In order to promote domestic industries and agriculture and restrict the inflow of materials from unfavored nations, some governments impose certain barriers. The tariffs, which can be regarded as the three R's of global business: rules, rate schedules, and regulations, are imposed by countries. Duties can be imposed on goods and services, thereby making it difficult for importers to import as well as for consumers to buy. A Harmonized Tariff System (HTS) has been adopted by the majority of trading nations, under which importers and exporters have to determine the correct classification number for a given product or service that will cross borders. This classification helps in the identifying of the product and applicable tariff. A nontariff (NTB) can also be imposed which is any measure other than a tariff that is a deterrent or obstacle to the sale of products in a foreign market. This includes quotas, discriminatory procurement policies, restrictive customs procedures, arbitrary monetary policies, and restrictive regulations. A quota is a government-imposed limit or restriction on the number of units or the total value of a particular product or product category that can be imported. In addition, discriminatory procurement policies can take the form of government rules and administrative regulations specifying that local vendors or suppliers receive priority consideration. Customs procedures are also considered restrictive if they are administered in a way that makes compliance difficult and expensive. Discriminatory exchange rate policies are imposed to distort trade in much the same way as selective import duties and export subsidies. Finally, restrictive administrative and technical regulations can create barriers to trade. These may take the form of antidumping regulations, product size regulations, and safety and health regulations. Some of these regulations are intended to keep out foreign goods; others are directed toward legitimate domestic objectives.