Question

Why should tariff and non-tariff barriers be removed to promote globalisation ?​

Answer 1

Answer:

Non-tariff barriers to trade (NTBs) or sometimes called "Non-Tariff Measures(NTMs)" are trade barriers that restrict imports or exports of goods or services through mechanisms other than the simple imposition of tariffs.

The Southern African Development Community (SADC) defines a non-tariff barrier as "any obstacle to international trade that is not an import or export duty. They may take the form of import quotas, subsidies, customs delays, technical barriers, or other systems preventing or impeding trade."[1] According to the World Trade Organization, non-tariff barriers to trade include import licensing, rules for valuation of goods at customs, pre-shipment inspections, rules of origin ('made in'), and trade prepared investment measures.[2]

Answer 2

Tariff and non-tariff barriers are removed to promote globalization as:

• A tariff means the government's tax on imports or exports:

• Tariff removal means the removal of protectionist measures like quotas and tariffs to encourage foreign trade

• Tariffs are used to make the imports from other countries more expensive and hence extract profit from international trade as well as encourage local products and actors in the market.

• However, globalization requires that countries lower their tariffs on foreign goods to encourage international trade.

• Therefore if tariffs are reduced, then foreign traders can export more goods into a country and hence increases the flow of goods. This ultimately increases foreign trade and hence globalization.

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