Problem in International Trade

 

Compared to the implementation of domestic trade, international trade is extremely more complicated and complex. The complications are caused by political and state boundaries that can hinder trade. Obstacles or problems that are often encountered in the handling of imported goods is the faltered process of delivery of goods, as well as the number of documents that must be completed by the importer (Ningsih, 2016).Problems in International Trade are mostly about the rules and regulations that are based on legislation in the country of destination and are often operated by the Customs & Excise authorities of those countries. Based on website exportvirginia.org, the Office of the United States Trade Representative (USTR) classifies foreign trade problems or barriers that broken down into two broad categories, they include:

  1. Tariff Barriers:
    1. Customs Duties
    2. Taxes
    3. Licensing
    4. Quotes
  2. Non-Tariff Barriers:
    1. Health, Safety and Technical standards (may be part of tariff controls)
    2. Cultural (ex.: taste, religion, language etc.)
    3. Nation’s buying preferences
    4. Collaboration (ex.: cartels)