Tariff Barriers

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The constraints of global industrial has significant affected the economic performance of developing countries. When a developing country has bad economic performance, it may influence the country GDP. This can cause the gap of poverty between developing countries and developed countries become huge.
Tariff is a tax on a good that is imposed by the importing country when an imported good crosses its international boundary. Governments use to influence international trade and protect domestic industries from foreign competition. (McTaggart, Findlay & Parkin, 2010). Tariff escalation refers to where the tariffs rise with the level of processing to afford protection to processed product in importing countries. Tariff escalation has potential of
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Market access issues in services trade, are equally relevant to developing countries, such as services that involve the temporary liquidity of workers. The barriers of export face by developing countries are higher than industrial countries. If the market access for agricultural products becomes higher this may directly reduce the poverty in the developing countries. When the demand growth in manufacturing and urban services in the developing countries, it will significant reduce rural poverty (Geihner and Nankami, 2002). If the market access conditions have increase and been influenced by bilateral trade agreements. Trade agreements provide trading partners with lower tariffs. But it have made it harder for developing countries to take full advantage of poverty reduction and rapid growth since the government of particular country will apply different level of tariff rate to similar product depending on their origin. For exporter, markets access not only the disadvantages that the exporter faces to domestic producers and also on the relative pros and cons that it has compared to competitors from other countries (Fugazza & McLaren,…show more content…
The size of countries affect the economic performance since low fertility and immigration reduce the market size of a country resulting in low production, high domestic product price and lack of competition between importer and exporter competitors. There is less subject to foreign aggression and safety is a public good that arise if a country is larger. High population size allows a country achieve economies of scale in the production of goods and services especially public goods. Lower the per capita cost of public goods where more taxpayers pay for governments such as infrastructure, and public health. The per capita cost declines with the number of taxpayers (Alesina & Spolaore, 2005). Country size will directly affect the output and growth of a country. The share of government expenditure over GDP is decreasing in population and size also represents the income and purchase power that interact in the market. Immigration of high-skilled people imposes costs on their countries of origin such as the cost of education has been heavily subsidized by the countries. People leaving the country it may lead to the reduction of the working population and production and trade and then the economic growth will slow down (Newland, 2003). According Jones (1995), the economics of US growth rapidly as the population such as scientists and researcher

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