Types of Government and their impact on Trade
-
Upload
shreya-mishra -
Category
Documents
-
view
217 -
download
0
Transcript of Types of Government and their impact on Trade
-
8/7/2019 Types of Government and their impact on Trade
1/27
-
8/7/2019 Types of Government and their impact on Trade
2/27
Government:
A government is the body through which apoliticalunit exercises its authority, controls andadministers public policy, and directs and
controls the actions of its members or subjects.Role: Bind Sovereignty Security Economic Development Maintain Law & Order
Policies Formulation Trade Policy:
It is a governmental policy controllingforeigntrade.
-
8/7/2019 Types of Government and their impact on Trade
3/27
EconomicRationales
reventing
Unem loyment
rotecting InfantIndustries
romotingIndustrialisation
Im rovingcom etetive
osition
UneconomicRationales
Maintaining
essentialindustries
ealing
it unfriendlycountries
Maintaining or
e
tendings eres ofinfluence
reservingnational identity
-
8/7/2019 Types of Government and their impact on Trade
4/27
It is a form ofgovernment where in a monarchacts as head of the state within the parametersof a written constitution
Japan --Nippon and NihonWW1 Manchuria WW2
May 1947, Constitutional Monarchy
Prime Minister--Head ofgovernment-- Naoto
KanEmperor - -Head of State -- Emperor Akihito
Legislative--Bicameral Diet --House ofRepresentatives and House of Councillors
-
8/7/2019 Types of Government and their impact on Trade
5/27
Japanese trade is often called processing trade
Programs to support Exports & Imports:a. Special deduction of export income
b. Develop world class industries
c. Import tariff refund
d. Japan Export-Import Bank
Ban on import of: rice, milk, sugar and sugarcane, and
wheat Despite huge imports offood Tariff duties Consumption Tax
Internal Tax
-
8/7/2019 Types of Government and their impact on Trade
6/27
Is a member of the G8, APEC, "ASEAN Plus
Three & WTO
Powerful and Impartial Civil Service METI
Easy access to credit and loans with low-
repayment probability
Exchange Rate- Appreciating Yen
Trade Liberalization - Lowering tariffs rates
-
8/7/2019 Types of Government and their impact on Trade
7/27
Socialism is an economic and political
theory advocating public or common
ownership and cooperative management of
the means of production and allocation ofresources
Government owns the major firms but the
prices is market mechanism driven
-
8/7/2019 Types of Government and their impact on Trade
8/27
France is a semi presidential republic with its
main ideals expressed in the Declaration of
the Rights of man and of the citizen
Although privatisation is there but Industriessuch as aeronautics, defence, automobiles,
and telecommunications are still with
government
-
8/7/2019 Types of Government and their impact on Trade
9/27
France is one of the E s major importer and
exporter with everythingfrom raw
commodities to automobiles
In 1992, the Treaty of Maastricht was signed.Member states of the European nion have
established a Community Integrated Tariff
(TARIC) system, where duties are applied to
imports from non-E countries
-
8/7/2019 Types of Government and their impact on Trade
10/27
Duties levied on imports from non-E
countries, are moderate.
Most raw materials enter duty-free or at low
rates, most manufactured goods are subjectto rates between 5 and 17 percent
France, share common trade and tariff
policies with the rest of the E countries,
has discussed the erection of trade barriersagainst non-E companies and products
-
8/7/2019 Types of Government and their impact on Trade
11/27
A communist government is a centrally
planned system built on state ownership of
allfactors of production and controlof alleconomic activities.
There is no right to property
-
8/7/2019 Types of Government and their impact on Trade
12/27
-
8/7/2019 Types of Government and their impact on Trade
13/27
Throughout the reform period, thegovernment reduced tariffs and other tradebarriers, with the overall tariff rate fallingfrom 56% to 15%.
By 2001, less than 40% of imports weresubject to tariffs and only 9 % of import weresubject tolicensing and import quotas.
Trade has increased from under 10% of GDPto 64% of GDP over the same period
The trade policy, allows producers to avoidpaying the Value Added Tax (VAT) since 2002,has resulted in an overdeveloped exportsector of China.
-
8/7/2019 Types of Government and their impact on Trade
14/27
Apart from import prohibitions China has
continued touse non-tariff border measures
(such as import and export licensing) as
instruments of its trade and industrialpolicies.
China has continued to reform its Customs
transit system to simplify Customs
declaration procedures.Government do impose tariffs as a
mechanism to control imports from other
countries.
-
8/7/2019 Types of Government and their impact on Trade
15/27
An economic system in which investment in
and ownership of means of production ,distribution, and exchange of wealth is made
and maintained chiefly by private
individuals or corporations, especially as
contrasted to cooperatively or state-ownedmeans of wealth.
-
8/7/2019 Types of Government and their impact on Trade
16/27
Witnessed Dramatic Change
Lead a world of imports
One of the top 3 exporters
Trade regulated by: Office of the United
States Trade Representative.
The U.S. has agreements in force with 17
countries
-
8/7/2019 Types of Government and their impact on Trade
17/27
Congress can enact lawsExample:
Establish tariff rates
Implement trade agreements
Provide remedies against unfairly traded importsCongress has delegated some powers to the
Executive Branch
US is a member of several international trade
organizationsPurpose is to come to an agreement on trade
issues with other countries.
-
8/7/2019 Types of Government and their impact on Trade
18/27
1. Crude oil , 12.10
2.
edi
i
l, de t l
d
r
euti
l
re r tions , .
. P ssenger
rs
,
.2
4. Ot er ouse old goods
, .9
.Computer
essories, .4
6. Automotive partsand accessories ,
7. Cottonappareland ouse old goods, 2.8
8.Computers
, 2.6
9. Telecommunicationsequipment , 2.4
10. Video equipment , 2.
-
8/7/2019 Types of Government and their impact on Trade
19/27
1. Civilian aircraft includingparts, 7.1
2. Medicinal, dentaland pharmaceuticalpreparations , 4.4
3.Semiconductors
, 3.5
4. Other industrial machines, 2.9
5. Automotive parts andaccessories , 2.8
6. Telecommunicationsequipment , 2.7
7. Passenger cars , 2.6
8. Medicinalequipment , 2.5
9. Electric apparatus , 2.5
10. Plastic materials , 2.4
-
8/7/2019 Types of Government and their impact on Trade
20/27
-
8/7/2019 Types of Government and their impact on Trade
21/27
The United States
Current Bilateral/Multilateral FTA'
sProposed Bilateral/Multilateral FTA'
-
8/7/2019 Types of Government and their impact on Trade
22/27
Democracy means a form ofgovernment in
which the supreme power is vested in the
people and exercised directly by their
elected agents under a free electoral system.
-
8/7/2019 Types of Government and their impact on Trade
23/27
Belief in import substitution
Complex system of licensing and control over
imports through non-fiscal and fiscal barriers.
Trade Policy Reforms one of the major planksof the new economic policies initiated from
July 1991 onwards.
Changes include reduction of trade
barriers, simplifying procedures
-
8/7/2019 Types of Government and their impact on Trade
24/27
Free repatriation of profits and capital
investment is permitted
Export profits are exempt from income tax
Higher royalty payments of 8% (net of taxes)are permitted on export sales as compared to
5% on domestic sales.
Export commissions upto 10% are also
permissible.
-
8/7/2019 Types of Government and their impact on Trade
25/27
Inputs required to be imported for export
production are exempted from customs duty
under the Advance License Scheme.
EPCG scheme: allows import of capital goodsat concessional rates of duty, subject to an
export obligation
Export Oriented Units (EOUs) and Export
Processing Zones (EPZs) enjoy specialincentives
-
8/7/2019 Types of Government and their impact on Trade
26/27
Thank You!
-
8/7/2019 Types of Government and their impact on Trade
27/27
http://en.wikipedia.org/wiki/Economy_of_the_ nited_States
http://www.economywatch.com/international-trade/usa.html
http://www.suite101.com/content/top-us-imports--
exports-2009-a204269 http://www.bls.gov/news.release/ximpim.nr0.htm
http://www.nationsencyclopedia.com/economies/Europe/France-INTERNATIONAL-TRADE.html
http://www.buyusa.gov/france/en/116.htmlhttp://www.state.gov/r/pa/ei/bgn/4142.htm
http://www.economywatch.com/foreign-direct-investment/countries/japan.html
siteresources.worldbank.org/INTRANETTRADE/.../JapanTradePolicy_eng.doc : Article By Junichi Goto Kobe
niversity