Tariff, Quotas, Non-Tariff Barrier in International Marketing

Running head: INTERNATIONAL MARKETING
International
Marketing
3/31/2019

INTERNATIONAL MARKETING 1
Tariff
Tariffs are imposed by the government of all the nations to restrict the level of imports by
augmenting the services and goods prices bought from an international supplier and reflecting
them as very less attractive to the customers (Nunn & Trefler, 2010). For instance, major
tariffs in the United States are imposed on industrial goods, like 30-50% of tariff is imposed
on washing machines and solar panels (United States Trade Representative, 2019).
Quotas
The quota is imposed by the government of the country as a restriction on the trade that
works as the limitation on the goods or service monetary value that can be imported or
exported by a nation in specific time duration. The example of Quota:

INTERNATIONAL MARKETING 2
Source [(United States Department of Agriculture, 2016)]
Non-Tariff Barrier
A non-tariff barrier is one of the ways that is used to limit the trade by using trade barrier in a
type other than a tariff. Non-Tariff includes levies, embargoes, quotas, and sanctions. For
instance, according to Reuters, there is a round of UN sanctions in contradiction of North
Korea and Kim Jong Un regime adopted in 2017 in the month of December. The sanctions
were introduced in order to cut down exports of diesel, gasoline, and different products
manufactured through refined oil to the country, and banned the Industrial equipment,
machinery vehicle, and industrial metals, to North Korea (Reuters, 2017).
The government of the nation places restrictions on the trade of goods and services, to
support the local industries in their development stages. Governments also limit trade to raise
business at domestic level in place of inspiring businesses to shift out of the nation. These
protective strategies work towards maintaining the high prices which support domestic
businesses to develop (International Trade, 2019).
NAFTA
North American Free Trade Agreement worked towards eliminating a number of tariffs from
the trade between the US, Canada, and Mexico, which introduced in the year 1994. A number
of tariffs, specifically linked to textiles, automobiles, and agriculture, were progressively
phased out in the time duration of 1994 and 2008. With the introduction of NAFTA, a debate
was continuously related to the impact of this agreement on the signatory nations. From its
initial phase, the agreement resulted in the relocation of the U.S jobs to Mexico, in spite of its
supplementary NAALC (Amadeo, 2019). NAFTA influenced a number of auto workers in