global framework for export marketing

T.Y.B.COM - EXPORT MARKETING - SEM V

MODULE II
GLOBAL FRAMEWORK FOR EXPORT MARKETING

,Q 1. What is trade barriers ? Explain the types of trade barriers briefly.


• Meaning :- Trade barriers are restrictions imposed on the movement of goods
between the countries.
• Types :- Trade barriers are of two types :- Tariff barriers & Non tariff barriers
TARIFF BARRIERS NON TARIFF BARRIERS
(FINANCIAL) ( NON FINANCIAL )
1. Ad Valorem tariff 1. Quota
2. Specific Duty tariff 2. Foreign exchange regulations
3. Compound/ combined “ 3. Product standards
4. Seasonal “ 4. Documentation formalities
5. Anti dumping tariff 5. Licences & permits
6. Countervailing “ 6. Packaging requirements
7. Protective tariff 7. Consular formalities

, Q 2. Distinction between Tariff & Non tariff barriers

No. Tariff Barrier Non tariff barrier

1. Meaning Financial barriers Non financial barriers

2 Nature Duties/taxes levied on Quantitative restrictions on
products foreign trade
3 Price Affect price of goods Does not affect price directly

4 Types Ad valorem, specific duty etc Quota, F/E restrictions etc

5 Time reqd Less time consuming More time consuming

6 Flexibility Less flexible More flexible

7 Revenue Govt. gets revenue directly No revenue to government

8 Protection No protection to home Protection to home industries
industries