Forms of Import Tariffs and Its Effects on International Trade

After the economic reforms in India, the scope of international trade is expanding tremendously. With the growth of international trade, there are various challenges and issues are also emerging. The tariff is one of the most important concerns that affect the international trade. International trade is nothing but the exchange of goods and services as well as resources between countries. It involves transactions between residents of different countries. In comparison to internal trade, international trade has greater complexity as it involves heterogeneity of customers and currencies, differences in legal systems, more elaborate documentation, diverse restrictions in the form of taxes, regulations, duties, traffic, quotas, trade barriers, standards, restrains to movement of specified goods and services and issues related to shipping and transportation.