The barriers to international trade By Fei CIA4U May 23rd

Learning Goals Be able to identify the barriers to internation al trade Be able to explain the consequen ces of those barriers Be able to explain why countries have trade barriers Give examples of current trade barriers

First learning goal Be able to identify the barriers to internation al trade

Trade barriers are government-induced restrictions on international trade.

There are the forms of barriers to international trade

Tariff barriers 1)tariff reduction 2)tariff classification 3)tariff peaks 4)tariff quotas

Non-tariff barriers 1)import licensing 2)export licensing 3)import quotas 4)import prohibition 5)technical barriers to trade 6)export restrictions 7)government procurement

Discussion – Could you give a example of tariff reduction? – For example, the member of WTO do not reach the level of tariff Concession as they promised. – Could you give a example of tariff classification? – Like the customs officer have administrative discretion,so we cannot predict the applied tariffs for the same product

2 nd Learning Goal Be able to explain the consequences of those barriers

Discussion What are the reasons for individual countries to put controls on trade?what do you think?

The consequences of tariffs Advantage of tariffs protecting its domestic production increasing government revenues achieving rather precise objectives Disadvantage of tariffs increasing the cost of imports to the costomer difficult to be reduced or eliminated

The consequences of non-tariffs Adventages It can provide greater flexibility in bargain and administration More concealable More certain and precise as trade restraint Disadvantages Increased the difficulties to international trade Exert no pressure to keep domestic price down Inequities and corruption may occur in the allocation of quotas both in importing countries and exporting countries

3rd Learning goal Be able to explain why countri es have trade barrier s

Reasons 1)To protect their own industries against the competition of foreign goods. 2)Differents tradition, differents cultures 3)Awareness of health and safety issues was increased

Example of tariffs bariers World Economic Crises between 1929 and 1933, in order to get out of crises,the capitalist country raised tariffs,limited the input of foreign goods.All of this is to protect home market.

4th Learning Goal Give examples of current trade barriers

For China Nontariff Barriers Tariff-Rate Quotas (TRQs) Border Trade Customs Valuation Export Subsidies

For Canada In 2010, Canada announced the unilateral elimination of most favored nation (MFN) tariffs on imported manufacturing inputs. Most tariffs were eliminated immediately. The Canadian government announced further ta riff relief on 70 items in Canada‟s manufacturing sector in November Canada has pledged to eliminate all MFN tariffs on imported machinery and equipment by 2015.

Now, it is the game time~~~

Keys to exercises Fill in the blanks with the words given below. Tariffs Non-tariffs ( ) ( ) ( quotas ) (import licensing) (classification) ( technical barriers to trade) ( peaks ) (export restriction) ( reduction ) ( subsidies ) ( government procurement) quotas,classification,export restriction, subsidies,reduction,government procurement,import licensing,peaks,technical barriers to trade

True or false (1)Tariff barriers are the most common form of trade restriction.( ) (2)Non-tariff barriers are less visible than tariffs, but they are more effective restrictions on trade.( ) (3)Through using the import quotas, the importing countries can keep their domestic price down.( ) Answers:T T F

The 1st Learning goal is created by myself Be able to know the solutions to solve the tariffs

Solutions Through exchanges and negotiations,to break the barriers to trade Study the international trade laws Keep the reputation for quality Learn to work to upgrade your own industries when you meet the tariff barriers Safeguard our benefits when we are punished

Discussion Do you know other methods to solve the this problem?

My 2nd learning goal Be able to find the characters of tariff barriers

Types of characters universality systematicnes validit dualism controversial elusive

Work Cited t&client=aff- 1616dh&hs=0nV&affdom=1616.net&channel=t4&source=lnm s&biw=1349&bih=684&tbm=isch&sa=1&q=free+trade&oq=fr ee+trade&gs_l=img.3..0j0i24l2j0i12i24j0i24l c..14.img.WqEt_82nJe M

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Thank you for watching~~~~