Trade+Barriers

Ryan, Kevin, Breanna
 * Belize's Trade Barriers**
 * In Belize 53% of the government revenues are from tariffs
 * Import dutie is another form of a tariff and taxes on 0-45 % onto imported goods
 * Goods that would recieve zero percent are certain medecines and foods. Goods that would recieve fourty-five percent would be automobiles, live animals, and certain luxury items.
 * The Import Licensing Regime requires you to have a license on importing goods like wooden furniture, carbonated drinks, rice and flour. The goods that you can import freely are brooms, matches, pastas, and soaps.
 * There is a general tax of 10 % on all imports
 * Belize Political Risks**
 * International crime sindicates that deal with the illegal narcotics trade
 * There are international border disputes


 * **Trade barriers**
 * Barriers are the governments actions or policies that make it difficult to trade across borders. Ways the government does this is they establish tariffs, place quotas, require domestic companies to boycott particular countries, and place restricting licensing requirements for importers.

Tariffs are taxes placed on products that are traded internationally. Tariffs raise the cost of the product to the importer, which discourages consumers from buying the imported product. Tariffs are the most common trade barriers.

Quotas are a limit on the quantity or monetary amount of product that can be imported from a given country. Once the quota has been met, no more of that product can be imported for a certain period of time. The quota creates a limited supply of the imported good. This protects domestic products from too much foreign competition. Import quotas have been used to protect the textile, shoe, automobile, and steel industries in some countries.

Boycotts are when government issues an absolute restriction of certain products from certain countries. For example, in India, the importation of many consumer goods is banned. This ban forces foreign companies that want to sell consumer goods in India to invest in India and manufacture the products locally. In Japan, the government maintains a nearly complete ban on the import of rice. This action protects Japanese rice farmers from foreign competition. Norway protects its apple and pear producers by allowing imports only after the domestic crop has been sold.

Licensing Requirements are when governments control imports by requiring that a company has an import license. This license grants permission to import a product. This license can be withdrawn at any time.

Trade Sanctions-A government can impose trade restrictions against another country to protest a country’s behavior. Sanctions are a result from political disputes between countries. Ex (Iran, Cuba, and North Korea)
 * Political Risks in International Business **

Expropriation- In extreme cases, a host government or company can confiscate, or take over another company. Expropriation is when a government takes control and ownership of foreign-owned assets and companies. Ex (The new republics after fall of USSR took control of assets of the USSR)

Economic Nationalism- A form of protectionism where the government and culture encourage citizens to purchased domestic made products not foreign ones. Laws can be established that protect against foreign trade.

Civil Unrest or War- Social disorder, extreme income unevenness, and frequent changes in government cause uncertainty and high risk in doing business because the business can be vulnerable.

Sites: []

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