Environmental degradation is the consumption of natural resources, such as trees, water, earth, habitat, and air faster than nature can replenish them.
Barriers to International Business The Canadian government uses barriers, often referred to as roadblocks, to help protect domestic businesses and consumers. 1. Tariffs Tariffs, also called customs duties, are a form of tax on certain types of imports. Finished imported goods include tariffs, which increase their prices. Canadian products do not carry such tariffs, and therefore are cheaper than the imported products 2. Non-Tariff Barriers Non-tariff barriers are controls or standards for the quality of imported goods set do high that the foreign competitors cannot enter the market. 3. Costs of Importing and Exporting The price of a product or service must take the landed cost into consideration. The landed cost is the actual cost od an improved purchase item, composed of the vendor cost, transpiration charges, duties, taxes, broker fees and any other charges. 4. Excise Tax An excise tax is a tax in the manufacture, sale, or consumption of a particular product within another country. 5. Currency Fluctuations Since currency rates fluctuate on a daily basis, and international purchase made on day may cost more or less than another day. Canada and International Trade Agreements Two main advantages to reducing trade barriers 1. Domestic business can sell their products abroad at a lower price since duties are not added. 2. Consumers have access to new foreign products that may result in lower costs and quality improvement of domestic products. Trade agreements between countries allow goods and services to flow more freely across boarders. North American Free Trade Agreement (NAFTA) Canada-US Free Trade Agreement (FTA) came into affect in January 1989. In 1994, Mexico, the US, and Canada formed NAFTA.
- Fall '17
- Business, International Trade