Question

introduces students to the reality that tariffs, and other policies that create trade barriers that inhibit economic prosperity, are designed to punish consumers so that government and the country’s ruling class can enrich themselves at the expense of consumers and the working class. As a government’s controlling political party changes, so may the government’s policies on tariffs and trade barriers.

discuss the issues below as they relate to free and fair trade policies between the US and Cuba. As a general guideline, must be 400-500 words in total.

• Should private US businesses invest in Cuba; and
• When should the US consider including Cuba in any regional trade agreements.

Answer 1

ANS - Tarrif barrier means imposing import-duty and non - tarrif barriers refer to restricting imports through import-licensing, import quota (quantitative restrictions) or banning the imports .For the expansion of International trade , the government formulate many polices for the reduction of Tarrif and by removing non-tarrif barriers . There are various barriers in free & fair trade

1 - Trade in Services

2 - Trade in related Intellectual Property Rights (TRIPs)

3 - Trade Related Investment Measures (TRIMs)

The government reduction in subsidy , there is also a problem in free trade in foodgrains barring the nations facing 'balance of payments' difficulty' , country facing the foreign exchange , Public distribution system . There is also an another problem related to subsidies on water , electricity , fertilizers ,seeds , pesticides . Output related assistance refers to 'support price' for the output of the farmer .

There are various restriction on foreign investment . There is a various barriers for free flow of foreign investment which reduces the global output and employement . It creates the problem in 'Balance of payment' .

The another barriers related to trade in services related to banking, insurance, transport, communication, tourism and others . MNCs face many problems regarding free trade .

The Issues related to free & fair trade policies between the US and Cuba are following :

There are diplomatic relation between US and Cuba , relations which has been served in 1961 during the cold war .

1 - The cuba government refuses to move toward (democratization and greatyer respect for human rights) .

2 - The US has stop financial help to pther copuntries if they trade non food items with cuba .

3 - The cuba goverment also restrict relating to staying in his country .

4 - The united state is also a supply medicine and medicine products to cuba . There are some restrictions imposed by the cuba government to the united citizens for bussiness .

5 - The cuba must pay cash for all imports as credit is not allowed .

6 - The united state holds $6 billion worth of financial claims against the cuban government .

.YES ,There are many transaction between US and cuba continue to be prohibited . The united state is also a significant supplier of humanterian goods to cuba . Now , the US play an important role in cuba state controlled economy .