Trade regulation policies are paramount for any country to progress in today’s global world. The fast paced economic activities of 21st century has forced numerous countries to re-evaluate their trade regulation policies, primarily based on their specialization and global niche markets. This article will focus on two separate case studies of China and Ethiopia. Throughout this article we will discuss the past history and prevailing trade regulation policies of these countries and how these polices have affected the macro and micro economic operations with in these countries.
Trade regulation policies can vary based on the imports and exports of the country. China is one of the biggest emerging economies, with immense potential to topple any …show more content…
Plagued by institutional corruption and political instability, Ethiopia has had problems stabilizing its trade regulations. Despite being one of the oldest civilizations, Ethiopia is trying hard to find its place in global economic presence. Ethiopia has been struggling to find stability through import and export policies. According to regulation number 270 EC import trade is exclusively reserved for domestic investors. This implies that, unlike China, Ethiopia’s import policy is strict and limited to a few in the domestic market. This limits the flow of resources outside of the country which disables the country’s potential to capitalize on its specialized production. These disincentives locals to extract and refine resources for import purposes. The complicated legal discourse to register for import further disables many businesses to import goods; however, in recent years, acquiring an import license has become considerably simpler and …show more content…
Apart from goods that are harmful to the local public such drugs and alcohol, there is no defined quota or ban on products. This being mentioned, we must also notice that some imports must meet the standards set by Quality and Standards Authority of Ethiopia. The import spectrum of Ethiopia’s economy is very limited, so is the case with exports. Regulation number 270 allows the export of raw coffee, chat; oil seeds, pulses, hides and skins brought form the market and live sheep, goats and cattle. This policy falls perfectly in line with the agricultural line of Ethiopia; which heavily relies on its agricultural nature. In order to export, the business or individuals need a permit from commercial banks and prepare Application of Quality Testing and Certification. This helps ensure the quality of exports is high. This further helps cement the reputation of Ethiopia in the global market.
There are a number of documents that are required to conduct any kind of export activity in Ethiopia. These documents include signed contract by seller and buyer, and undertaking letter of payment with in ninety days, Export License, Tax registration certificate, Export permit and one’s name in the list of exporter issued by National Bank of Ethiopia. These documents and legal complication reinforces the idea of how hard it can become for a commoner
Trade regulation policies can vary based on the imports and exports of the country. China is one of the biggest emerging economies, with immense potential to topple any …show more content…
Plagued by institutional corruption and political instability, Ethiopia has had problems stabilizing its trade regulations. Despite being one of the oldest civilizations, Ethiopia is trying hard to find its place in global economic presence. Ethiopia has been struggling to find stability through import and export policies. According to regulation number 270 EC import trade is exclusively reserved for domestic investors. This implies that, unlike China, Ethiopia’s import policy is strict and limited to a few in the domestic market. This limits the flow of resources outside of the country which disables the country’s potential to capitalize on its specialized production. These disincentives locals to extract and refine resources for import purposes. The complicated legal discourse to register for import further disables many businesses to import goods; however, in recent years, acquiring an import license has become considerably simpler and …show more content…
Apart from goods that are harmful to the local public such drugs and alcohol, there is no defined quota or ban on products. This being mentioned, we must also notice that some imports must meet the standards set by Quality and Standards Authority of Ethiopia. The import spectrum of Ethiopia’s economy is very limited, so is the case with exports. Regulation number 270 allows the export of raw coffee, chat; oil seeds, pulses, hides and skins brought form the market and live sheep, goats and cattle. This policy falls perfectly in line with the agricultural line of Ethiopia; which heavily relies on its agricultural nature. In order to export, the business or individuals need a permit from commercial banks and prepare Application of Quality Testing and Certification. This helps ensure the quality of exports is high. This further helps cement the reputation of Ethiopia in the global market.
There are a number of documents that are required to conduct any kind of export activity in Ethiopia. These documents include signed contract by seller and buyer, and undertaking letter of payment with in ninety days, Export License, Tax registration certificate, Export permit and one’s name in the list of exporter issued by National Bank of Ethiopia. These documents and legal complication reinforces the idea of how hard it can become for a commoner