What Are The Different Types Of Import Barriers And How Do They Impact Strategy Implementation In Procurement?
Import barriers can be a major roadblock for businesses looking to procure goods from other countries. These barriers come in many forms, ranging from tariffs and quotas to non-tariff measures like technical regulations and licensing requirements. Understanding the different types of import barriers is essential for any procurement strategy, as they can significantly impact supply chain operations and costs. In this blog post, we’ll explore the various types of import barriers and examine their implications on procurement strategy implementation. So buckle up and get ready to dive into the world of international trade!
Types of import barriers
There are several types of import barriers that can impact strategy implementation in procurement. These include:
– Tariffs: A tariff is a tax on imported goods, which can make them more expensive and less competitive against domestic products. Tariffs can also create paperwork and red tape that can delay or block shipments.
– Quotas: A quota is a limit on the quantity of a particular good that can be imported into a country. This may make it difficult to obtain the desired quantity of goods, or may increase costs due to scarcity.
– embargo: An embargo is a government order that prohibits trade with a particular country or region. This may make it impossible to obtain certain goods from specific suppliers.
– Non-tariff barriers: Non-tariff barriers (NTBs) are regulatory measures that restrict imports without using tariffs or quotas. They can take the form of regulations, licensing requirements, or standards that differ from those in the exporting country. NTBs can create delays, increase costs, and cause product rejection.
How import barriers impact strategy implementation in procurement
There are several types of import barriers that can impact strategy implementation in procurement. These include:
1. Trade restrictions: These are government-imposed measures that restrict or limit the trade of goods and services between countries. They can take the form of tariffs, quotas, or embargoes. Trade restrictions can make it more difficult and expensive to procure goods and services from other countries, which can impact strategy implementation.
2. Regulatory barriers: These are regulatory requirements that make it more difficult to trade goods and services between countries. They can take the form of product standards, safety standards, or environmental regulations. Regulatory barriers often make it more difficult and expensive to procure goods and services from other countries, which can impact strategy implementation.
3. Customs barriers: These are administrative procedures related to the importation and exportation of goods that can delay or impede the trade of goods and services between countries. Customs barriers often make it more difficult and expensive to procure goods and services from other countries, which can impact strategy implementation.
Case study: The European Union’s reaction to the Trump administration’s tariff policies
The Trump administration’s imposition of tariffs on imported steel and aluminum in March 2018 was met with immediate opposition from the European Union (EU). The EU responded by announcing its own set of retaliatory tariffs on a range of US products, including bourbon, Harley-Davidson motorcycles, and Levi’s jeans.
The EU’s response was significant because it represented a united front against the Trump administration’s protectionist trade policies. The EU’s reaction also demonstrated the potential for global trade tensions to escalate quickly and disrupt businesses’ supply chains.
The Trump administration has since imposed additional tariffs on imported goods from China, Mexico, and other countries. The EU has continued to oppose these actions and has worked with other trading partners to challenge the legality of the tariffs at the World Trade Organization.
Conclusion
In conclusion, import barriers are an important factor to consider when developing a strategic implementation plan for procurement in any business. By understanding the different types of import barriers and how they can impact strategy implementation, businesses can take steps to ensure that their international operations run as smoothly as possible. Furthermore, by taking into account the potential challenges presented by these barriers and planning accordingly, companies can reduce the risk of costly delays or disruptions to their supply chain.