South African Wine Industry, business and finance homework help

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furee

Business Finance

Description

In APA format, analyze in detail the trade barriers in the South African Wine Industry international market that impact the wine industry. The second part of the assignment is supported by the theory you have described in the trade barriers section. You will have to recalculate the impact on your industry based on new numbers you have chosen. For example, if a tariff is currently 10%, you will adjust it to 15% and 5% and recalculate the impacts. Use specific examples. III. Trade Barriers: Describe the country’s specific trade barriers geared toward foreign MNCs entering the market. A. Define trade barriers in your specific international market. Consider drawing from multiple sources in your definition. B. Determine the implications of the trade barriers on your company. Do these barriers hinder your company’s business? Justify your response. C. Determine the implications of the trade barriers on your industry. Do these barriers hinder the industry within the specific international market? Justify your response. D. Determine the implications of the trade barriers on consumers. Do these barriers hinder the consumer’s purchasing power within the specific international market? Justify your response.

Recalculating Parameters: Select the previously identified trade barriers and change their parameters for your selected industry, making appropriate economic calculations and representing the changes in charts. A. Calculate the effect of the change of a tariff on your particular industry. Illustrate the change visually in a chart. B. Calculate the effect of the change of a quota on your particular industry. Illustrate the change visually in a chart. C. Calculate the effect of the change of a government subsidy on the overall GDP. Illustrate the change visually in a chart.

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Explanation & Answer

Attached.

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Running head: South African Wine Industry

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Trade barriers
These are policies and business practices that make trading difficult. The main aim of trade
barriers is to protect the home economic market from the international market. The main way of
enforcing trade barriers is by imposing high taxation or hiking prices of imported goods to make
locally produced more competitive.
Types of barriers
Tariffs
They are mostly used by governments by imposing heavy taxation on importation of goods as a
result the international companies end up raising their cost for a return on investment making
locally produced product affordable.
Non-tariff barriers
These are barriers that do not involve putting taxations on imported goods. Non-tariff barriers
can be imposed in three major ways.

Running head: South African Wine Industry

2

Subsidies- this is where governments support local businesses with financing and technical
assistance to make them competitive with other foreign companies.
Quotas-this is where governments limit importation of goods to exact standards or quantity.
Laws and regulations which include standards that is hard to meet by foreign countries.
Trade barriers in South African Wine Industry
Little or no wine subsidies
These are government policies that include programs which support and finance certain aspects
of the industry. The wine industry in South Africa although it benefits from some of forms of
policies there is so much more that can be done compared to other players in the industry.
Countries like the United States have levied heavy measures to importation of wine to also
improve their local market they have put high taxes in the exportation of wine to other countries
apart from Canada. If South Africa could borrow a leaf from china and the US in investigating
better ways to o...


Anonymous
I was struggling with this subject, and this helped me a ton!

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