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Unit Five International Trade Barriers Pre-reading Questions What are international trade barriers? What kinds of international trade barriers do you know of? What are the purposes nations use international trade barriers? Do you think that international trade barriers will be totally eliminated in the future? What measures can be taken to reduce or eliminate international trade barriers? Tariffs a tax imposed by a government on physical goods as they move into or out of a country A customs area a geographical area within which goods may move freely without being subjected to customs duties customs duties ad valorem and specific; compound duty ad valorem duty stated in terms of a percentage of the value of an imported article, such as 10 or 20 percent ad valorem specific duty expressed in terms of an amount of money per quantity of goods, such as 20 cents per pound or per gallon a compound duty a combination of an ad valorem and a specific duty Non-tariff Barriers quantitative trade restrictions----to impose absolute limitations upon foreign trade and inhibit market responses Import Quotas quantitative trade restrictions take the form of import quotas that are administered by the issuance of import licenses to individual traders Import Quotas unilateral quotas negotiated quotas or multilateral quotas tariff quotas The unilateral quota fixed quota that is adopted without prior consultation or negotiation with other countries negotiated bilateral or multilateral quota The importing country negotiates with supplying countries, or with groups of exporters in those countries, before deciding the allotment of the quota by definite shares. tariff quota A specified quantity of a product is permitted to enter the country at a given rate of duty – or even duty-free. Customs Classification and Valuation customs classification---A detailed classification, coding system, and description of goods that enter into international trade. Customs valuation---The met
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