Question

Does Caterpillar face tariff or non-tariff barriers in the target export markets? What are the tariff...

Does Caterpillar face tariff or non-tariff barriers in the target export markets? What are the tariff rates or non-tariff barriers imposed on these items?

Homework Answers

Answer #1

Tariff and non-tariff barriers are ways by which a country can restrict trade. In tariff barriers a country imposes s certain percentage of amount as charges that has to be paid by the company if they want to sell their product in the target market. Non tariff barriers include the provision of controlling trade by imposing quotas, embargoes and restrictions.

Caterpillar has its business all over the world so they will be facing tariff and non tariff barriers. It manufactures machinery that are used in construction business. The target export market for Caterpillar is developing countries where plenty of construction activities will be carried out . The tariff rates will be around 24 percent that Caterpillar will have to pay.

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