Paper Free Trade: Make friends with Non-tariff Barrier

The world has turned into one big village that is connected between countries. With the growth of digital technology, information can move very quickly across the continent. In addition, there is a tendency to make the countries of the world into one big economic community. In this paper one of the papers discussed free trade and the consequences of this type of trade.

Through free trade, there will be no obstacles created by a country in conducting trade with other countries. Countries in the world or directly involved in free trade has the right to sell products or services to other countries without having to be burdened by the limitations of tax or customs duties.

Given free trade, expected interaction between countries in the trade became more intense without having to be restricted by regulations that handcuff the country of destination in the country. The volume of exports and imports are expected to be increased, which in turn will spur the industry to conduct production activities. The direct impact of increase in production activities is to increase economic growth and increasing purchasing power.

From the advantages mentioned above as well as the ease of free trade that was designed by the countries in the world actually still there are limitations and barriers that unconsciously restrict trading activity. These limits are known as non-tariff barriers. Non-tariff barriers are barriers to trade that are not included in the tariff barriers or other barriers to the financial side.

Non-tariff barrier may not seem like a hindrance. However, if the investigation or further study, these barriers can impede trade transactions. The existence of non-tariff barriers should be addressed wisely by the states directly involved in free trade. The existence of non-tariff barriers can be a motivating factor of a country in improving the quality of products traded.

Here are the ways of a country in implementing non-tariff barrier.

- Standardization of quality of products or services: how does this by making a special quality standards. That is, products or services that will go into a particular country must meet the quality standards of the country. This restriction in no way related to financial aspects.

- Import quota restrictions: how does this by limiting the quantity of goods that may enter a country. Restrictions on the number of goods is done with the aim of imported products are not flooding the domestic market. With this restriction is expected products of the country could compete in his own country.

- Procedures or special rules: procedures or regulations issued by the local government may be the biggest obstacle faced by overseas products. Regulations or procedures issued by the government is key to the entry of foreign products. With the existence of special regulations, the movement of foreign products in the country could be limited.

- The structure of the market: the market is where the transaction between seller and buyer. The market has its own structure that makes him unique and different compared to other markets. This becomes quite obvious barrier to foreign products that will be coming into the country.

- Political, economic, cultural and social authority: a product or service from abroad should pay attention to factors such as political, economic, social and cultural destinations. By considering these factors, it is expected marketing efforts will be easier. However, usually in the presence of these factors, which inhibits the movement of corporate marketing step.