Trade Controls

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The search engine reputation management company should know about the different trade controls in the world in order to understand how certain companies can import and export their products in order to gain profits and revenues. There is a constant debate on how countries should control the flow of foreign goods and investments across their borders are as old as international trade itself. Until this day governments continue to control the different trades that go on in the country. One thing that the U.S. has is being able to subsidize farms which means that there are programs in place to guarantee farmers including large corporate farms, a certain price for their crops regardless of the market prices which ensures stable income in the farming community but can also have a negative impact on the world economy.


There are many different trades going on internationally and that is why there are forms of trade controls that restrict free trades. There is something called protectionism since they work on protecting domestic industries by reducing competition and the use of controls to restrict free trade. All countries engage in protectionism at some extent. There are tariffs, which are the taxes on imports because they raise the foreign-made gods price and make them less competitive. Quotas on the other hand are restrictions on imports that impose a limit on the quantity of a good that can be important over a period of time. These quotas are in place to protect certain industries or those facing strong competition form the foreign firms. There is also something called an embargo, which is a quota in place for economic and political reasons that bans the import or export of certain goods to a specific country. Most countries use dumping which is the practice of selling exported goods below the price that producers would normally charge in their home markets. If certain businesses want to be successful and spend their money else where, governments should start to support free trade and refrain from imposing regulations that restrict the free flow of products between different nations.

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