Question

Discuss a tariff issue and a non-tariff issue faced by company entering a global market - describe by using an example for each.

Answer 1

Let's take a small company just planning to enter the export market. the company is situated somewhere in United Kingdom.

Tariff issue that company will face is after the Brexit they cannot export the goods to rest of the Europe as there is no deal between the UK and the Europe and that will put all the UK goods under the tariff making them costlier than other goods which doesn't have any tariff on them, like goods coming in from Ireland.

Non tariff issue will be sanitary and phyto sanitary issues like maintaining a standard quantity. For a small company its not easy to maintain high standard specially when they don't face any economies of scale. It makes they goods costlier and they lose on competition.