Topic > Understanding Ghana's Tariff Structure and Global Impact

One of the examples of a non-tariff trade barrier is the domestic content requirement. National content requirements not only protect local industries, but also help supporting industries thrive and gain greater market share. Non-tariff barriers are restrictions imposed on countries such as voluntary export restrictions, anti-dumping and subsidies, quotas (Hill, 2004). Voluntary export restrictions (VERs) occur when a country limits the number of products exported to a particular country in order to gain favor or to diffuse a situation where trade tensions are high. A second type of barrier is a quota. Quota is another form of tariff in which the government limits the amount of goods that can be imported into the country. “It is usually combined with the use of import taxes, every time a business imports a certain good and exceeds the quota amount, a higher tax will be imposed on the remaining goods” (Hill, 2004). Global financing can be an uncertain undertaking. Tariffs can make it very difficult to accurately judge whether or not to approve a risky venture. A financial institution must carefully examine all sides of the puzzle. In general, organizations engaged in international financial activities may experience much greater uncertainty about their revenues. An unstable and unpredictable revenue stream can make running a business difficult