The use of tariff and non tariff barriers has been significant In virtually all countries. However, the use of tariff has been substantially reduced and trading has been far more open and relaxed since the end of the sass’s. The use of tariffs in the modern day is split into two main trends; developed economies tend to have relatively low tariffs and developing economies the opposite. However, the difference In tariffs used by developed economies is quite drastic. The E operates a tariff of 11%, whereas the USA has a 3% tariff, In contrast with Japan that maintains a tariff of 0%.
The declining significance in the use of tariff barriers as seen a rise in the use of various other forms of trade barrier including import quotas. The state Is a major force In determining the current geographical configuration of the automobile Industry which remains determined by the levels of tariffs quotas but more significantly now in the use of ‘differential’ tariffs and quotas. This situation reveals a states attempt to stimulate their own national industries. For example, the state may place high tariffs on imported vehicles but place low tariffs on Imported components thus encouraging local production.
This approach has come more pervasive and has been heavily pursued in Latin America, some Asian countries, Europe and the USA. Emerging markets have three distinctive types of automobile regime, each with a different policy emphasis: 1 . Protected autonomous markets (Pam’s): countries which continue to provide strong protection to the national market and domestic industry e. G. China & Malaysia. 2. Integrated peripheral markets (Imps): countries that have developed their own automobile industry through integration with a geographical contiguous core automobile market e. . Eastern Europe. 3. Emerging regional markets (ERM): groups of emerging market countries which have sought to increase the efficiency of their motor industries by reducing protection & increasing competitive pressures & by using access to the domestic market as a lever to promote investment by Tens. States also offer an array of incentives including financial to encourage automobile firms to Invest In the countries. Most cases of this nature took place In the USA with incentives such as personnel training, investment in roads land purchase and facility development.
The last role to mention is the states involvement in environmental and vehicle safety policies. Legislation from the state has a major Impact on automobile manufacturers as it affects the fundamental design of a vehicle. Legislation affecting design can include emission control and safety features. The EX. passed a directive coming into effect minion which states that automobile manufacturers must be responsible for covering ten cost AT recycling ventricles teeny nave nutcracker & Tanat 8 vehicles weight is made up of recyclable components.