Treatment of imported goods Essay Example
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Treatment of imported goods
Imports are refereed to the purchasing side of trade and in this way are referred as such when one side obtains goods from another area. There are many economic theories that rely on the principle of comparative advantage (Hell, 1). This goes on to influence theory, as well as policy. As a result, the countries continue to import goods because they obtain them at a better rate from abroad. However, despite the economic advantage, most governments view the excess importation of goods as a tool to erode the national economies.
Thus, nations tend to impose tariffs on those goods entering the country. The higher the price of the tariff, the lower the price advantage of the good; this is over the domestically produced goods and this level’s competition. In this way, they are calculated as duties whereby this is about four percent and as with the fixed tariffs, this is applied to a specified quantity of the imported product. On the side of the exporter, they insure freight forwarders when arranging and forwarding. This may have an advantage in simplicity, but one should have their own policy.
Unlike the fire insurance that is similar to many others, the marine insurance policy is a valued one (Hinkelman, 400). In this case, when the insurance gets placed, there is an agreed upon value. Therefore in the situation of total loss the full amount is paid. The countries also restrict the imports by non-tariff barriers. This is done by the establishing the voluntary restraint barriers. On the other hand, the tariff may bring value along with a disadvantage. In this way, it benefits one side of the economy and harms the other.
Hell, Karl. “Importing”. Encyclopedia of Business, 2nd ed. 2011. Web. Retrieved 10 September
2011 from http://www.referenceforbusiness.com/encyclopedia/Gov-Inc/Importing.html
Hinkelman, Edward G. Manley, Myron. Nolan, James L. Shippey, Karla C. Bidwell, Wendy.
“Importers manual U.S.A”.
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