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Barriers to International Trade

Barriers to International Trade. Chapter 1.5. Tariffs. Taxes on imports that are imposed by the local government Increase the price o the imported product Sometimes used to protect local products Lowering tariffs leads to increased trade with countries. Currency Fluctuations.

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Barriers to International Trade

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  1. Barriers to International Trade Chapter 1.5

  2. Tariffs • Taxes on imports that are imposed by the local government • Increase the price o the imported product • Sometimes used to protect local products • Lowering tariffs leads to increased trade with countries

  3. Currency Fluctuations • Currency exchange rate affects the value of goods traded with other countries, particularly if the value of currency changes between time or ordering and time of delivery

  4. Investment Regulations • Non-Canadian investors must follow laws related to foreign investment • This may limit the amount of foreign investment

  5. Environmental Restrictions • Restrictions on imports to protect Canadian natural resources • Inspections may be required • If products do not meet standards, they may not enter

  6. Foreign Relations and Trade Sanctions • Canada may use trade sanctions to influence policies or actions of other nations • Sanctions may include: • Limitations on diplomatic contacts and travel • Seizing or freezing assets in Canada • Restricting trade

  7. Safety Regulations • Foreign imports must meet Canadian safety requirements as set out in several Acts (i.e. Food and Drugs Act, Canadian Food Inspection Act, etc.)

  8. Immigration Policies • Canada depends on immigrants to grow the economy • Immigrants create a demand for imports and contribute to trade with their home countries • Make Canada more culturally diverse • Visitors must have a valid passport and often a visa

  9. Visitors, Immigrants, Refugees • Visitors – spend money! • Immigrants – people who have relocated to Canada, must have a visa, may qualify for Permanent Resident Status (see p. 33) • Refugees – people who have fled their country to escape persecution or war

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