AJB/ASB 4405 – International Financial Management Assignment Sample 2024
a) International trade is restricted by tariffs
Tariffs create trade barriers that can directly impact the international and domestic trading market. The price of the imported product can be raised by tariffs increment policy and which puts a negative effect on international trade. In June 2021, there was a deal among policymakers to import aircraft from the international market.
In 2019, International trade sometimes depends on domestic consumers, who discuss the current market situation of the domestic market (Pavithran et al. 2018). WTO has decided to approve tariffs of almost $4 billion to improve the domestic market of the airline industry. At the time of import of aircraft individual policymakers are confused by the dynamic pricing policy of the international market. The international deal can be managed by advanced ideas of the policymakers which absorb numerous problems of the tariffs offered.
Subsidies, quotas and tariffs are the primary trade of the government and only the government can control the specific trades which engage the import quality of the numerous products. The quality control system can improve international market trade which is sometimes restricted by tariffs. International borders sometimes create difficulties for the imported product such as tariffs, taxes on imports, and government subsidy of the domestic industry.
These are the common barriers to numerous imported products. The economic rate of the industry can be downfall by the tariffs and international trade is directly affected by the tariffs policy. Protectionism creates the best protection for the international market which is to eliminate tariffs and subsidy policy of the domestic market.
The specific policy can protect the domestic market through tariffs and subsidiary policies from international trade (Malo-Alain et al. 2021). The subsidies policy and import quota can eliminate foreign competitors of the market and create restriction plans for numerous competitors.
b) Tariffs intended to restrict the import
Numerous consumers are enhancing the price of imported goods because the tax rate and tariffs policy are increased. The price of the imported products can be raised by the government quota and subsidies policy of the domestic market (Albu et al. 2020). Numerous consumers of domestic products are confused by global trade and the international market can easily achieve numerous goals and targets.
The economic impact of the domestic market can be seen by the tariffs and subsidies policy of the international market. The specific deal was struck in June 2021 and WTO has decided to eliminate tariffs for five years on transaction trade. Almost $11.5 billion of financial transactions can be imposed by the WTO and due to the high amount of trade tax; the international market can be enhanced. The economical level of the domestic market can be downfall by the high tax rate and domestic consumers are confused with the huge loss.
The policymakers are enhancing microeconomic factors of the international market, which is the key pattern to enhancing international market trade. The domestic producers and consumers are surprised by the suddenly incremental policy of subsidies and international quota. Most of the domestic consumers are trying to stop the international market trade but they are losing the quality of the product as well as revenue.
The domestic economy can be improved by using a quality control system but the supply chain of the international market creates basic barriers. The international trade policy can be restricted by the domestic government to eliminate tariffs and quota policy of the international market (Bussière et al. 2018). International trade is enhancing the economical position by using trade policies and individual consumers of the domestic market can restrict the import service.
These difficulties create barriers for the domestic market and individual producers are confused by the specific policy. WTO can impose the European product due to an increase of tariffs worth $7.5 billion and international trade restricted to remove substantial tariffs. Numerous domestic consumers and producers are restricting international market trade due to enhancing quota, and tariffs policies (Salah and Abdel-Salam, 2019).
The World Trade Organization has decided to make financial barriers of the international market to eliminate basic growth of the international market. The quota system and tariffs are the combined system of tariff rate quota system which has a direct impact on numerous consumers and producers of the domestic market. Domestic consumers and producers are facing numerous issues by the tariffs system which is imposed by the WTO.
c) Deal at the beginning of this document
In July 2021, the deal was struck between policymakers and the airline industry to import aircraft from the international market. But there are numerous difficulties with the import system which is involved in the international market. The subtidal tariffs and quota system policy of the international market can make a market barrier and numerous producers and consumers of the domestic market can lose their business.
The European Union agreed that they solve 17 year long disputes of aircraft subsidies. The decision making process of the international traders is enhancing basic policies of the international market but domestic consumers can decrease the basic sales of the business. The high tariffs rate and tax policies of the international market can decrease the financial performance of the domestic market (Güven, 2018). Almost $7.5 billion tariffs can be imposed by the WTO which eliminates numerous difficulties in the international market.
The basic procedure of international trade can include basic difficulties of the domestic market because the number of residential tariffs is too high and domestic consumers are affected by the common situation. The domestic consumers and producers are engaged by the imported product quality but there was a high tariff rate of the imported product.
The specific deal was struck in July 2021, at the same time WTO has eliminated tariffs worth $7.5 billion. Numerous consumers of the domestic market got engaged by the specific policy of WTO which is included by the security policy of the European Commission. The domestic government is trying to restrict international imports by reducing international trade taxes because it directly puts a negative effect on the domestic consumers and producers (Manoel and da Costa Moraes, 2019). Sometimes foreign assistant programs can manage the difficulties of the deal to expand the policy areas of the international market.
d) Outline of the deal with own views
I believe that trade restrictions include basic protection plans for the domestic market and numerous consumers are improving business policy by using protectionism policies. The tariffs rate can enhance the basic price rate of imported products which can directly affect producers of the domestic market (Purwanti et al. 2019).
International trade involves numerous difficulties by using protectionism between suppliers and imported goods. International trade can enhance the basic pricing rate by trade barriers and which creates basic barriers to domestic business. The noticeable factors are the price of the imported product can be increased by the foreign tariffs and subsidies quota system.
As a result, consumers and producers of the domestic market can easily be trapped by the common situation. The international market can enhance the basic price by using tariffs and subsidies policy of the market. Individual domestic marketers are facing losses due to the common situation.
Reference list
Ajibade, A.T., Okere, W., Isiaka, M.A. and Mabinuori, O., 2019. International financial reporting standard (IFRS) adoption and foreign direct investments (FDI): A comparative analysis of Nigeria and Ghana. Asian Journal of Economics, Business and Accounting, 11(2), pp.1-10. Available at: https://publication.babcock.edu.ng/asset/docs/publications/ACCT/9532/4728.pdf
Albu, N., Albu, C.N. and Gray, S.J., 2020, July. Institutional factors and the impact of international financial reporting standards: the Central and Eastern European experience. In Accounting Forum (Vol. 44, No. 3, pp. 184-214). Routledge. Available at: https://www.tandfonline.com/doi/abs/10.1080/01559982.2019.1701793
Bussière, M., Schmidt, J. and Valla, N., 2018. International financial flows in the new normal: Key patterns (and why we should care). In International macroeconomics in the wake of the global financial crisis (pp. 249-269). Springer, Cham. Available at: https://m.masccom.com/www/papers_submitted/4471/Analysis_Factors_Influencing_Financial_Management_Behaviour.pdf
Güven, A.B., 2018. Whither the post-Washington Consensus? International financial institutions and development policy before and after the crisis. Review of International Political Economy, 25(3), pp.392-417. Available at: https://www.tandfonline.com/doi/abs/10.1080/09692290.2018.1459781
Malo-Alain, A., Aldoseri, M. and Melegy, M., 2021. Measuring the effect of international financial reporting standards on quality of accounting performance and efficiency of investment decisions. Accounting, 7(1), pp.249-256. Available at: https://www.taylorfrancis.com/chapters/edit/10.4324/9781351323765-2/international-asymmetries-design-international-financial-system-1-jos%C3%A9-antonio-ocampo
Manoel, A.A.S. and da Costa Moraes, M.B., 2019. Cash Holdings in Brazil: a study considering the effects of financial constraints and the adoption of international financial reporting standards. Revista Universo Contábil, 14(2), pp.118-136. Available at: https://bu.furb.br/ojs/index.php/universocontabil/article/view/6996/0
Pavithran, A., Selvam, M., Gopinath, R. and Kathiravan, C., 2018. Effects of Adopting International Financial Reporting Standards: An Empirical Evidence from selected Indian companies. Management, 5(4), pp.137-147. Available at: https://www.researchgate.net/profile/Chinnadurai-Kathiravan/publication/329183039_Effects_of_Adopting_International_Financial_Reporting_Standards_An_Empirical_Evidence_from_selected_Indian_companies/links/5c034fcb45851523d156abaf/Effects-of-Adopting-International-Financial-Reporting-Standards-An-Empirical-Evidence-from-selected-Indian-companies.pdf
Purwanti, Anis, and I. Wayan Wisnu GT., 2019. “Earning Management Analysis before and after Implementation of International Financial Reporting Standards (IFRS): Empirical Study of Automotive and Components Companies Registered on the IDX.” Journal of Accounting and Strategic Finance 1, no. 1 (2018): 45-56. Available at: http://jasf.upnjatim.ac.id/index.php/jasf/article/view/25
Salah, W. and Abdel-Salam, A., 2019. The effects of international financial reporting standards on financial reporting quality. Athens Journal of Business & Economics, 5(3), pp.221-242. Available at: https://athensjournals.gr/business/2018-2484-AJBE-ACC-Salah-02.pdf
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