What are the Advantages and Disadvantages of Tariff and Non-Tariff Barriers?

what are the advantages and disadvantages of tariff and non tariff barriers
Content
  1. Advantages and disadvantages of tariff barriers
    1. Advantage
    2. Disadvantages
  2. Advantages and disadvantages of non-tariff barriers
    1. Advantage
    2. Disadvantages
  3. Characteristics of tariff barriers
  4. Characteristics of non-tariff barriers

Tariff barriersThese are all the taxes that a country must pay, whether they are exporters or importers. It is a tax that the country charges to protect its internal products, so that the exported products have more difficulties and cannot compete with the products of their own country.

This type of barrier does not prohibit imports, but if it makes them difficult, since they will have to pay very expensive taxes. It is important to know the cost of taxes before importing.

Non-tariff barriers are placed by governments to make it difficult or avoid importing certain products, without the need to raise the value of taxes. This aims to favor and value local products. Likewise, these barriers allow the economic growth of the country, in some moments the non-tariff barriers can even become political. This type is not usually widely used and can form financial problems for companies.

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money tax

Advantages and disadvantages of tariff barriers

We refer to the taxes that must be paid to import or export a product from the country. Its advantages and disadvantages are as follows:

Advantage

  • The owning country will have the means to carry out projects, especially if it is an import, since the import tax is much higher.
  • It improves the use of internal products to an incredible level, since those from abroad are much more expensive.
  • There is more variety of own products for lso consumers.
  • The production nationwide.
  • Competition will be less, since there are no imported products, there will only be competition between the country's products.
  • Supports the income and expenses of a country.

Disadvantages

  • I know increase the cost for the consumers.
  • The cost of production for companies is increased.
  • Over time it can happen that by not seeing imported products, consumers get bored of consuming only their own products.
  • Not having exports that makes it difficult the economy for providers.

Advantages and disadvantages of non-tariff barriers

We refer to the barriers that can even prevent the importation of a product. Its advantages and disadvantages are as follows:

Advantage

  • It can serve as a preference, that is, for governments that only let in few types of products.
  • They are useful to ensure quality to the consumer.
  • It allows the products to be all of the country

Disadvantages

  • Makes the price go up of the products.
  • Do not let consumers enjoy all amounts.
  • It is feared that if the own companies close, since there is no external financial support for them.

barriers tariff chains

Characteristics of tariff barriers

Barriers are instruments of control, at the same time they generate international rules, it is possible to know if a product is controlled, it allows to know if it is legal or not. However, in many countries it turns against them, acts badly on their new economic development. The least developed countries are the ones with the highest tariff barriers, countries like the Bahamas, Chad, etc.

In all countries there are many barriers, but some are not commercial than others, Japan has always been favored with its rice imports, the United States with its sauces, the commercial countries are the ones who benefit from it.

Characteristics of non-tariff barriers

It is said that these types of barriers negatively influences a countrySince it does not allow economic development, that is why in several countries this type of barrier has been eradicated. Many countries still depend on barriers to finance all their expenses, so this is a delay for the country.

Non-tariff barriers are mostly used to support weak industries, supports their strategic intention, and after they are growing it is useless, that is why developed countries stopped using this type of barrier.

Barriers are used for economic growth in underdeveloped countries, what is to be avoided is any type of economic catastrophe, which is why several have chosen to stop using them.

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