Global Trade Countries whose exports involve a high proportion of primary products are generally disadvantaged from global trade regimes. Many developing countries are disadvantaged from any kind of trade which involved primary exports.
The global trade regime favors those countries whose exports mainly consist of secondary products.
Many developed countries have formed various trade restrictions that do not favor the trade of primary products A free business essay on the subject of international trade - view, print and download to help you with your studies..
Some of these restrictions include taxes, export bans, supervised exports and even regulated exports. Some of the bans on exports that have been imposed by countries include the trade of fishery products, wildlife and even certain species of animals and plants The restrictions of the trade of the primary products come in form of imposition of taxes. The taxes come in different forms which include ad valorem tax, specific tax and even progressive tax.
The high tax rates act as a form of discouragement to the traders prevented from exporting primary products.
The value of the products is very low as compared to the imposed taxes Global Trade Countries whose exports involve a high proportion of primary products are generally disadvantaged from global trade regimes. Many developing .
Another form of regulation of trade is the imposition of policies which do not favor exports such as introduction of quotas and requirements of licensing. The volume of trade of the primary goods is limited by the quotas and this has a negative effect on the gross domestic product. In the long run, the economic growth of the developed countries is slowed by lack of income (Das, 2004).
To sum up, the developed countries have enacted legislation which is meant to supervise any form of trade that involves the primary products.
International trade - free business essay - essay uk
s will ensure that the economies of the developing countries grow.
The tax restrictions should be removed to enhance the trade of the primary products.
The removal of these trade policies will also ensure that the countries have increased revenue collection hence tremendous increase of the gross domestic products Category: essays research papers; Title: International Trade..
In case the trade regimes remain unchanged, the developing countries will have poor economic improvements hence manipulation from the developed countries.