Why Forecasting has Become Very Difficult for Individuals, Firms, and Nations
Why are we being blindsided by Black Swans ? Whether you are an individual or a decision maker in a big corporation, or a policymaker in charge of planning for nations, it is a fact that forecasting has become very difficult in the present times. Indeed, the fact that big businesses and nations alike are […]
The Singapore Growth Model
Singapore has been one of the great success stories of South East Asia. The country started with very little money or resources just a few decades ago and had built one of the best global cities today. Their success story is not similar to that of China or Hong Kong. The differences are remarkable. The […]
New Emerging Markets: Mexico, Indonesia, Nigeria and Turkey (MINTs)
Global capital is always on the search of the next profitable opportunity and this is the reason why the BRICs or the grouping of Brazil, Russia, India, and China found favor as emerging markets in the last two decades. As these economies began to sag and saturate, the restless investors began looking for the next […]
Rational Approach to Project Management in Organizations
The evolution of organization theories from mechanistic to people based ones has influenced the approaches taken by managers in organizations towards the firm as well as organizing people. While the earlier decades of the 20th century witnessed the rise of the mechanistic of the rational approaches, since the 1970’s and particularly in the last decade […]
Is a Pollution Tax Worth it ?
Washington DC has seen several proposals for strange regulations. The latest one of these suggestions is a pollution tax. Many people believe that levying a tax may be the solution to eradicating the problem of climate change gradually. The world in general and Washington DC, in particular, wants to get rid of high levels of […]
International Trade has become the order of the day in the current environment of Globalization. The nature of economies namely under developed, developing and developed countries as well as the availability of natural resources, labor, technology and capital required for production etc play a important role in countries economy as well as its reliance on international trade. While countries which are rich in resources look for exporting to other countries and earning foreign exchange, countries mostly the developed countries rely on imports from developing countries for their use.
Countries like Europe and Us are heavily dependant upon Imports, developing countries like China and other Asian countries tend to rely on exports to these countries.
Though the countries and WTO have been advocating free trade and several Bi Lateral Treaties and Multi Lateral treaties have come into being to remove trade barriers from one member county to another, all of the countries still find the need to practice and have protectionist attitude towards international trade. There are political as well as economic considerations that govern the import and export duties levied by Governments. Primarily import and export duties aim to encourage or restrict the consumption as well as production in the domestic economy and market.
Countries levy Import and Export Duties on specific items and also based on countries of origin. The management of duties and tariffs is managed through Trade Laws and Policies. Besides imposing duties, countries also restrict and manage the import and export of items with the help of Licenses to Import and Export.
While normal items and traded goods like textiles, consumer durables, Handicrafts, electronics items, Food articles, Drugs etc are generally allowed to be imported and exported by all countries freely without restrictions.
Many items like second hand capital equipment, plant and machinery, engines etc are traded, transferred and imported normally by developing and under developed economies.
Such second hand machinery and goods are allowed to be imported into the receiving countries only through specific license obtained for the said purpose. Such license would set forth conditions required to be met by the importer to prove the residual life of the machinery etc.
Import of Fire Arms and Ammunitions are always covered under specific licenses in most of the countries.
Some countries like USA do allocate quantity restrictions for import of items like textile on certain countries and exporters would have to adhere to the quota norms, which are periodically reviewed and amended as required.
While the domestic industries are engaged in export of some important natural resources and raw materials like iron and steel, certain kinds of herbs etc, Governments control and restrict the export through issuing Export Licenses.
Most countries maintain a negative list of items which prohibit import and export of certain items like animal hides and other wildlife, precious wild life, live stock, narcotics and many more sensitive items.
When people import or export items into the country without applicable licenses, do not bring in consignments avoiding customs clearance and thus avoid paying duties as well as those items that are prohibited are brought into the country illegally, such trade is labeled as smuggling.
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