How trade restrictions affect international trade Essay

How do international countenances. duties. quotas. and trade limitations affect international trade and costs of production? International countenances are set in topographic point typically to protect states involved in trade. There are many types of countenances that have been in topographic point for rather a piece but the most common countenances are used to halt terrorist act. which is highly of import to even more so since September 11. 2001. Sanctions sing trade limitations on arms. ammo. and other stuffs used to do arms or explosives are common among states. When it comes to duties. it is a revenue enhancement on imports imposed by the authorities to raise financess.

There are besides many types of duties. which are used by about every authorities in the universe to work more money gross for that authorities. In many instances a duty is in topographic point to protect an industry in that state. A Quota is a manner to depict the cheques and balance system for which a authorities or concern determines its supply and demand measure. Different international countenances. duties. quotas. and trade limitations all can halter international trade and may besides increases the cost of production.

How do duties and countenances on the import of car engines into the U. S. affect production and costs at Acme? Tariffs and countenances finally would impede Acme Motors on the import of car engines and parts because the monetary value of the production pieces would lift perceptibly. At this current clip United States benefits highly from the North American Free Trade Agreement ( NAFTA ) . since the U. S. does non enforce duties and haltering countenances on trades with Canada and Mexico. As explained in the first paragraph. that if duties were implemented the monetary values of these merchandises would greatly increase because of the authorities take on this gross which would take to higher monetary values the consumers would stop up paying. So far it has shown to be good for the United States and Acme Motors holding the deficiency of countenances and duties.

Make you hold with trade limitations? When do you believe they are successful? My personal ideas are that trade limitations are really of import and that I do hold with these limitations. While 3rd universe states do non profit from these limitations it is still used to restrict terrorist trade capablenesss. maintains economic systems that are already established. and controls the flow of productions that look to monopolise one or many different signifiers of concern. The United States is heading into a recession or may already be knee deep into one but if the U. S. did non enforce trade limitations on certain states the really foundation in which this state was established would be swept right out from underneath our pess.

Mention:

Sawyer. W. C. . & A ; Sprinkle. R. L. ( 2003 ) . International Economics. Second Edition. 2003 by Pearson Education. Inc. . Upper Saddle River. New Jersey.

Taylor. S. ( 2007. Feb 07 ) . International Sanctions. Tariffs. Quotas. and Trade Restrictions. Retrieved on December 7. 2008. from hypertext transfer protocol: //www. associatedcontent. com/article/132626/international_sanctions_tariffs_quotas. hypertext markup language? cat=3