Trade Distortion and Marketing Barriers (Chapter 3)

Trade Distortion and Marketing Barriers (Chapter 3)

Free trade makes a great deal of sense theoretically because it increases efficiency and economic welfare for all involved nations and their citizens. South Korea’s trade barriers, however, do not represent an isolated case. In practice, free trade is woefully ignored by virtually all countries. Despite the advantages, nations are inclined to discourage free trade.

This chapter catalogs the types and impact of trade and marketing barriers. It examines trade restrictions and the rationale, if any, behind them. By understanding these barriers, marketers should be in a better position to cope with them. It would be impossible to list all marketing barriers because they are simply too numerous. Furthermore, governments are forever creating new import restrictions or adjusting the ones currently in use. For purposes of study, marketing barriers may be divided into two basic categories: tariffs and non tariff barriers. Figure 3.1 on p. 54 provides details of this division.

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