Sample Economics Paper on Trade protection and the role of non-tariff barriers

Trade protection and the role of non-tariff barriers

  1. Define tariffs and how they are calculated. How can tariffs help or hinder a nation’s economy?

Tariffs are taxes imposed by the government on those services and goods imported from other nations to serve the purpose of increasing price and making imports less desired or reducing competition with goods and services that are domestically manufactured. Besides being a measure to protect domestic products and industries, tariffs are used as a source of revenue for the government. Therefore, tariffs are basically taxes that are charged on services and goods as they transit from one country to the other. The country that is importing goods and services is the one that imposes tariffs. It is calculated by dividing the sum of total tariff revenue by the sum of total import value. Tariffs help a country by generating revenue on services and goods that are brought into the country. Through tariffs, a country can manage to support its political goals and stabilize its industries (Schmitthoff, C. M. (2020).

  1. Define a non-tariff barrier and list and define three types of non-tariff barriers.

These are trade barriers that regulate or restrict exports or imports of services and goods using other mechanisms besides simple tariff imposition. In fact, it is a measure other than just a custom tariff aimed at redistricting international trade. Non-tariff barriers include but are not limited to: Sanctions, levies, quotas, and embargoes (Kinzius, L., Sandkamp, A., & Yalcin, E. (2019).

Sanctions: – These are penalties or means of punishment imposed on a party that disobeys court orders or the law itself. The main aim of a sanction is to force a country to obey international law by ceasing to trade with the affected country.

Levies: – these are legal means that an authority imposing the tax or a bank can seize property for debt payment. Properties that are subject to seize are both intangible and tangible (cash, cars, houses).

Embargoes are orders issued by the government to restrict exchange with a specific country due to economic or political problems.

References

Kinzius, L., Sandkamp, A., & Yalcin, E. (2019). Trade protection and the role of non-tariff barriers. Review of World Economics155(4), 603-643. https://link.springer.com/article/10.1007/s10290-019-00341-6

Schmitthoff, C. M. (2020). International business law: a new law merchant. In Current Law and Social Problems, II (pp. 129-153). University of Toronto Press. https://www.degruyter.com/document/doi/10.3138/9781487575892-004/html