trade barrier Essay | Essay

This student essay consists of approximately 2 pages of analysis of Trade Barriers.

trade barrier Essay | Essay

This student essay consists of approximately 2 pages of analysis of Trade Barriers.
This section contains 359 words
(approx. 2 pages at 300 words per page)

Trade Barriers

Summary: A big part of economics is international economics where countries decide upon trading strategies to help their development. It can be said that trade barriers are created depending on the interests of the productive sectors, but the effect that it has finally is of a trade barrier because it brings a lot of added costs for international products.
We as consumers are obliged to buy what we are offered because there are no other products in the market. El Salvador once suffered of poor exportation because they bought external products and with the high taxation it brought to the country, the final cost to the product to other countries was very poor, because other countries also increased their taxation to El Salvador. So the policy was not very well adapted for El Salvador, taxations were too high before, even more than 100% of the total cost of the product. So the only way out was to open commerce for all countries, this is when the organization OMC was created. This was the beginning of something big, when El Salvador joined the World Trade Organization. (www.wto.org)

This ensured that every one of the countries involved was treated equally as if they were nationals. There will be no discrimination to any country involved in the negotiations. International Commerce looks to eliminate, or to reduce tariffs until it reaches the lowest level possible. For example, to include 0% to the capital goods and 15% to the final goods, instead of the 100% mentioned before.

The problem with this is that there is no limit or to what extent an objective is legitimate or necessary. If you go trespass this "limits" then you presence a barrier to trade. If it has been agreed before by the countries involved, then it is not a barrier. An example of this may be the FDA in the USA, it takes special measurements to reduce terrorism, but it is not a barrier because it is justified to reduce terrorism, but if you don't know about this and you have a problem at the airport, then it is a barrier for you, but really, it is only an agreement.

It can be said that trade barriers are created depending on the interests of the productive sectors, but the effect that it has finally is of a trade barrier because it brings a lot of added costs for international products. Barriers for trade, take things to the extreme, they demonstrate the excess of the necessity of change.

This section contains 359 words
(approx. 2 pages at 300 words per page)
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