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Lecture International marketing: Strategy and theory - Chapter 3: Trade distortions and marketing barriers

This chapter catalogs the types and impact of trade and marketing barriers. It examines trade restrictions and the rationale, if any, behind them. By understanding these barriers, marketers should be in a better position to cope with them. It would be impossible to list all marketing barriers because they are simply too numerous. | Chapter 3 Trade Distortions and Marketing Barriers Chapter Outline Protection of Local Industries Government: A Contribution to Protectionism Marketing Barriers: Tariffs Marketing Barriers: Nontariff Barriers Private Barriers World Trade Organization (WTO) Preferential Systems Protection of Local Industry Keeping Money at Home Reducing Unemployment Equalizing Cost and Price Enhancing National Security Protecting Infant Industry Marketing Barriers: Tariffs Direction: Import and Export Tariffs Purpose: Protective and Revenue Tariffs Lengths: Tariff Surcharge versus Countervailing Duty Rates: Specific, Ad Valorem, and Combined Distribution Point: Distribution and Consumption Taxes Marketing Barriers: Nontariff Barriers Government Participation in Trade - Administrative Guidance - Government Procurement and State Trading - Subsidies Marketing Barriers: Nontariff Barriers Customs and Entry Procedures - Classification - Valuation - Documentation - License or Permit - Inspection - Health and Safety Regulations Marketing Barriers: Nontariff Barriers Product Requirements - Product Standards - Packaging, Labeling, and Marking - Product Testing - Product Specifications Marketing Barriers: Nontariff Barriers Quotas - Absolute Quotas - Tariff Quotas - Voluntary Quotas Marketing Barriers: Nontariff Barriers Financial Control - Exchange Control - Multiple Exchange Rates - Prior Import Deposits and Credit Restrictions - Profit Remittance Restrictions Private Barriers Affiliated firms' business practices Cooperative business groups - keiretsu - chaebol The World Trade Organization (WTO) Goal: broad, multilateral, and free worldwide system of trading Most Favored Nation (MFN) Principle Normal Trade Relations (NTR) Principle GSP Generalized System of Preferences (GSP) Preferential system Aiding economic development of developing countries Allowing duty-free entry of . | Chapter 3 Trade Distortions and Marketing Barriers Chapter Outline Protection of Local Industries Government: A Contribution to Protectionism Marketing Barriers: Tariffs Marketing Barriers: Nontariff Barriers Private Barriers World Trade Organization (WTO) Preferential Systems Protection of Local Industry Keeping Money at Home Reducing Unemployment Equalizing Cost and Price Enhancing National Security Protecting Infant Industry Marketing Barriers: Tariffs Direction: Import and Export Tariffs Purpose: Protective and Revenue Tariffs Lengths: Tariff Surcharge versus Countervailing Duty Rates: Specific, Ad Valorem, and Combined Distribution Point: Distribution and Consumption Taxes Marketing Barriers: Nontariff Barriers Government Participation in Trade - Administrative Guidance - Government Procurement and State Trading - Subsidies Marketing Barriers: Nontariff Barriers Customs and Entry Procedures - Classification - Valuation - Documentation - License or Permit - Inspection - Health and