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About the barrier of international marketing
Typology: Summaries
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Q.DefineTariffBarriersasaMarketer,howwillyouform astrategyby analysingtariffandnon-tarifftosellsoftdrinksinIndia. Answer-Tariffbarriersarethosetaxesestablishedbyeachcountryto restrictforeigntrade.Normally,tariffbarrierstaxbothexportsandimports ofgoodsorservicescarriedoutbyacountry.However,thesetypesofrates arenotlimitedonlytocountries,astheremayalsobetariffbarriersby economiczones,suchasthosetaxesontradeintheeurozoneortheUS dollar. CharacteristicsofTariffBarriers- 1 .Tariffsareatypeofprotectionisttradebarrierthatcancomeinseveral forms. 2 .Whiletariffsmaybenefitafewdomesticsectors,economistsagreethat freetradepoliciesinaglobalmarketareideal. 3 .Tariffsarepaidbydomesticconsumersandnottheexportingcountry, buttheyhavetheeffectofraisingtherelativepricesofimportedproducts. 4 .Othertradebarriersincludequotas,licenses,andstandardization,all seekingtomakeforeigngoodsmoreexpensiveoravailableinalimited supply.
MajorTariffandNon-TariffBarriers- 1 .Exportsubsidiesanddomesticsupport Severalexportsubsidiesandotherdomesticsupportisprovidedtoseveral industriestomakethem competitiveinternationally.Exportearningsare exemptfrom taxesandexportersarenotsubjecttolocalmanufacturing tax.Whileexportsubsidiestendtodisplaceexportsfrom othercountries intothirdcountrymarkets,thedomesticsupportactsasadirectbarrier againstaccesstothedomesticmarket. 2 .ImportLicensing Indiamaintainsanontariffregulationonthreecategoriesofproducts: bannedorprohibiteditems(e.g.,tallow,fat,andoilsofanimalorigin); restricteditemsthatrequireanimportlicense(e.g.,livestockproductsand certainchemicals);and“canalized”items(e.g.,somepharmaceuticals) importableonlybygovernmenttradingmonopoliesandsubjecttocabinet approvalregardingimporttimingandquantity.India,however,oftenfails toobservetransparencyrequirements,suchaspublicationoftimingand quantityrestrictionsinitsOfficialGazetteornotificationtoWTO committees. 3 .Standards,testing,labeling&certification TheBureauofIndianStandards(BIS)establishedbytheIndianGovernment undertheBISAct 201 6andistheNationalStandardsBodyofIndia.The BureaufunctionsundertheMinistryofConsumerAffairs,Food&Public Distributionandisinvolvedintheharmoniousdevelopmentoftheactivities ofstandardization,markingandqualitycertificationofgoods. 4 .Procurement USTRsourcestatesthatIndialacksanoverarchinggovernment procurementpolicyand,asaresult,itsgovernmentprocurementpractices