Management Discussions

Maxwell Takyi

Saturday19 Sep at 4:35

Manage discussion entry

Hello All,

   Governments (countries) use specific policies and actions known as non-tariff trade barriers to protect their citizens' health and safety and their producers and manufacturers against outside competitions by reducing the number of specific items imported into their countries from foreign countries. Governments protect their citizens and their economies by using quotas to set the limits or restrict the imports of specific items from specific countries within a given time frame (David 2013).

   To effectively protect their populations from using defective, dangerous, or unhealthy products imported from foreign countries or to reduce competition for local producers and manufacturers, governments should be allowed to enact non-tariff barriers to entry. For instance, the US should be allowed to enact non-tariff barriers to entry on toys manufactured by specific countries that have been identified by the consumer product safety commission to contain lead or known to be a choking hazard for children.

   Furthermore, countries should be able to reduce competition for their local producers by placing quotas on importing products that are locally grown or produced. Finally, the same scenario applies to manufactured goods. Countries should be allowed to enact non-tariff barriers to entry on goods that are locally manufactured. The importation of goods that are locally manufactured disrupts jobs created by the local manufactures.  The enactment of non-tariff barriers to entry enables countries to regulate or control their economies and, therefore, be allowed.

 

Reference:

David, P. (2013).  International logistics: The management of international trade operations  (4th ed.). Retrieved from https://www.vitalsource.com/

Wen hao Li

Sunday20 Sep at 21:37

Manage discussion entry

Week 5/Discussion 1, 

Hello class, 

According to the textbook, non-tariff barriers are policies and actions that countries implement as a means to decrease the number of imports of certain goods (David, 2013, Pg. 615). In my opinion, I would suggest that countries should have a form of non-tariff barriers to entry. Having quotas gives countries a competitive advantage over a powerhouse such as China. The elimination of quotas would be detrimental to developing countries since China, for example, being the world’s top low-cost producers of textile apparel, would displace other countries’ products (David, 2013, Pg. 616). There are two types of quotas: the primary forms of non-tariff barriers: absolute quotas and tariff-rate quotas. It would seem more practical to sustain these quotas so that other countries are still allowed to export to the U.S. but by paying the additional costs for items such as sugar or by preventing the practice of dumping. According to Adam Barone (2020), a reason for tariffs and quotas is to reduce dumping, which is when a country or company exports a product at a lower price in the foreign importing market than the price in the exporter’s domestic market. The last reason for non-tariff barriers is to protect its countries’ domestic producers from foreign competition. With fewer efforts to maintain an advantage over the foreign market, domestic producers won’t have to fire workers or cut costs to keep up.  

References  

David, P. (2013).  International logistics: The management of international trade operations  (4th ed.). Retrieved from  https://www.vitalsource.com/ (Links to an external site.) 

Barone, A. (2020). Dumping. Retrieved from  https://www.investopedia.com/terms/d/dumping.asp (Links to an external site.)