Which non-tariff barrier can be defined as bureaucratic rules that complicate the import of foreign goods?

Which non-tariff barrier can be defined as bureaucratic rules that complicate the import of foreign goods?

• A. Voluntary export restraints
• B. Anti-dumping duties
• C. Administrative procedures
• D. Subsidies

Answer: (C)

Administrative procedures are indeed classified as non-tariff barriers because they encompass various bureaucratic rules and regulations that can create obstacles for the importation of foreign goods. These procedures can involve extensive paperwork, compliance with specific standards, inspections, certification requirements, and other regulatory processes. Such bureaucratic hurdles can delay or complicate the import process, making it more difficult for foreign producers to enter a market effectively. This type of barrier often serves to control the volume and quality of imported goods, ultimately influencing competition and protecting domestic industries. By imposing stringent administrative procedures, a country can indirectly favor local producers over foreign competitors, as the latter may struggle with the additional complexities involved in compliance. In contrast, voluntary export restraints involve agreements between exporting and importing countries to limit the quantity of goods exported, while anti-dumping duties are tariffs imposed on foreign imports believed to be priced below fair market value. Subsidies are financial supports given by governments to local businesses, helping them compete more effectively against foreign imports. Each of these options represents different mechanisms of trade regulation, but it is administrative procedures that specifically relate to the bureaucratic rules that complicate imports.

Administrative procedures are indeed classified as non-tariff barriers because they encompass various bureaucratic rules and regulations that can create obstacles for the importation of foreign goods. These procedures can involve extensive paperwork, compliance with specific standards, inspections, certification requirements, and other regulatory processes. Such bureaucratic hurdles can delay or complicate the import process, making it more difficult for foreign producers to enter a market effectively.

This type of barrier often serves to control the volume and quality of imported goods, ultimately influencing competition and protecting domestic industries. By imposing stringent administrative procedures, a country can indirectly favor local producers over foreign competitors, as the latter may struggle with the additional complexities involved in compliance.

In contrast, voluntary export restraints involve agreements between exporting and importing countries to limit the quantity of goods exported, while anti-dumping duties are tariffs imposed on foreign imports believed to be priced below fair market value. Subsidies are financial supports given by governments to local businesses, helping them compete more effectively against foreign imports. Each of these options represents different mechanisms of trade regulation, but it is administrative procedures that specifically relate to the bureaucratic rules that complicate imports.