Trading in the Global Marketplace Trading across continents and globally has required many regulations and initiatives in order to warrant equal opportunity for all countries involved. One way governments have chosen to support trading liberalization and/or protection is through the creation of trading tariffs. Tariffs consist of both direct taxation or levies and non-tariff barriers or policies to limit trading. In general, trading tariffs are relatively low in many countries, which have led to many economists questioning why the levies are not more significant. The following is an analysis of low trade barriers in developed countries, with final presentation directed at the most plausible component of low trading tariffs in general.
Tariffs …show more content…
As described by Magee (2011) “ there is considerable free riding in most industries in their lobbying for tariff protection…this helps to explain why tariffs are low in the USA…” (p. 35). This has been created because the rate for one company to fund a total lobbyist event can sometimes be so cost prohibitive that the only way to enjoy the benefits of a tariff reduction is by tagging along on anther’s coat tail. In reality, this type of action is meant to help those companies that have limited access to means of throwing lobbyist at self interest cost reductions. Gawande and Magee (2012) suggest that there is a way to over come the free rider problem by completely organizing those areas of most importance and calling upon all industries to back each other. While free riding will probably never cease to exist, there are a number of ways to mitigate the entrance of such tariff guiding …show more content…
But, for this reason many government have chosen to implement such measures to help regulate imports and increase revenues. As Faehn (2002) purports that “the inventiveness of governments in establishing ever less transparent protective systems has developed accordingly into non-tariff barriers” (p. 35). Simply, this explanation makes more sense than the other five when examining the implication of low tariff revenues by large developed countries.
Conclusion
In final analysis, tariffs and non-tariff barriers have had a tremendous effect on a global scale. While some developed countries appear to have lower tariff insinuations, many hide those fees in the non-tariff barrier initiatives. Since the non-tariff barrier realm is highly non-transparent and loosely regulated it is a simple avenue for countries to realize the type of revenue expected from such large entities. The only way to truly understand these consequences would be to establish some consistent means of measurement for all tariffs in all
Tariffs …show more content…
As described by Magee (2011) “ there is considerable free riding in most industries in their lobbying for tariff protection…this helps to explain why tariffs are low in the USA…” (p. 35). This has been created because the rate for one company to fund a total lobbyist event can sometimes be so cost prohibitive that the only way to enjoy the benefits of a tariff reduction is by tagging along on anther’s coat tail. In reality, this type of action is meant to help those companies that have limited access to means of throwing lobbyist at self interest cost reductions. Gawande and Magee (2012) suggest that there is a way to over come the free rider problem by completely organizing those areas of most importance and calling upon all industries to back each other. While free riding will probably never cease to exist, there are a number of ways to mitigate the entrance of such tariff guiding …show more content…
But, for this reason many government have chosen to implement such measures to help regulate imports and increase revenues. As Faehn (2002) purports that “the inventiveness of governments in establishing ever less transparent protective systems has developed accordingly into non-tariff barriers” (p. 35). Simply, this explanation makes more sense than the other five when examining the implication of low tariff revenues by large developed countries.
Conclusion
In final analysis, tariffs and non-tariff barriers have had a tremendous effect on a global scale. While some developed countries appear to have lower tariff insinuations, many hide those fees in the non-tariff barrier initiatives. Since the non-tariff barrier realm is highly non-transparent and loosely regulated it is a simple avenue for countries to realize the type of revenue expected from such large entities. The only way to truly understand these consequences would be to establish some consistent means of measurement for all tariffs in all