BUS Unit 4 DB SA FWP Essay Example | Topics and Well Written Essays - 250 words

BUS Unit 4 DB SA FWP - Essay Example India was the founding member of the GATT i.e. the world trade organization in 1947 as well as WTO i.e. World Trade Organization in 1995 and the main objective was to decrease the barriers of international trade through the decrease of tariffs, quotas plus subsidies (Krueger, 2002). The drift in Indian economic trade policy is a response to the spaghetti bowl effect which is often cited as a problematic of free trade agreements. It refers to the development of overlapping bilateral as well as regional trade agreements (Mukherji, 2011). Nevertheless the average tariffs overdid 200 percent, quantifiable restrictions on imports were widespread, as well as there were stringent restrictions on foreign investment (Mukherji, 2011). India is pushing for extra liberal global trade since protective tariff and of free trade is the foundation of classical economics, it has anticipated a leadership role amongst developing nations (Krueger, 2002). An analysis of trade restrictions in Saudi Arabia displays that various restrictions besides challenges regarding regulatory and bureaucratic management in this country occurs up to now (House K, 2013). It is true that Saudi Arabia is a member of the Gulf Cooperation Council and the Greater Arab Free Trade Area GAFTA, it is an executive program to stimulate the Trade Facilitation as well as Development Agreement (House K, 2013). Import tariffs are only useful for products from third countries. Saudi Arabia also restricts or prohibits importation of certain products and needs licenses for products too. Prohibited items are for example firearms as well as alcohol (House K, 2013). Some examples for products that need licenses from Saudi Arabian authorities are medical devices and religious material that does not relate to Islam (House K, 2013). The procedure for applying for a license can be long-lasting and poses a test for applying in companies. Restrictions that apply to the exercise of certain professions