Implications of Non-Tariff Measures on Firm's International Business Operations

Saini, Gordhan K.
July 2012
Journal of International Economics (0976-0792);Jul-Dec2012, Vol. 3 Issue 2, p114
Academic Journal
This paper attempts to explore the implications of Non-Tariff Measures (NTM) on the firm's international business operations. Following an analytical approach, the paper uses various cases of different NTMs to examine their implications on the firm's overseas operations. The paper demonstrates that the firms have to cope with complex set of NTMs while operating aboard, and apparently these NTMs influence firm's international operations in many ways. The paper concludes that firms should consider the possible implications of NTMs while evaluating the array of business and foreign market entry strategies. It is suggested that firm's business and marketing strategies must reflect the relative importance of NTMs as an environmental constraint in a prospective market and undermining the importance of these restrictions can lead to failure. A prior understanding of NTMs can help firms to become more proactive in dealing with NTMs while operating in international markets. Lastly, questions are raised for further research.


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