Competition law is a law that promotes or seeks to maintain market competition by regulating anti-competitive conduct by companies. Competition law is implemented through public and private enforcement, Competition law is known as anti-trust law in the United States, and as anti-monopoly law in China and Russia. In previous years it has known as trade practices law in the United Kingdom. In the European Union, it is referred to as both antitrust and competition law, the history of competition law reaches back to the Roman Empire. The business practices of market traders and governments have always been subject to scrutiny, since the 20th century, competition law has become global. The two largest and most influential systems of regulation are United States antitrust law and European Union competition law. National and regional competition authorities across the world have formed international support, modern competition law has historically evolved on a country level to promote and maintain fair competition in markets principally within the territorial boundaries of nation-states.
National competition law usually does not cover activity beyond territorial borders unless it has significant effects at nation-state level, countries may allow for extraterritorial jurisdiction in competition cases based on so-called effects doctrine. The protection of competition is governed by international competition agreements. These obligations were not included in GATT, but in 1994, with the conclusion of the Uruguay Round of GATT Multilateral Negotiations, the Agreement Establishing the WTO included a range of limited provisions on various cross-border competition issues on a sector specific basis. Competition law, or antitrust law, has three elements, prohibiting agreements or practices that restrict free trading and competition between business. This includes in particular the repression of trade caused by cartels. Banning abusive behavior by a firm dominating a market, or anti-competitive practices that tend to lead to such a dominant position, Practices controlled in this way may include predatory pricing, price gouging, refusal to deal, and many others.
Supervising the mergers and acquisitions of large corporations, including joint ventures. Substance and practice of competition law varies from jurisdiction to jurisdiction, protecting the interests of consumers and ensuring that entrepreneurs have an opportunity to compete in the market economy are often treated as important objectives. In recent decades, competition law has been viewed as a way to better public services. An early example of competition law can be found in Roman law, the Lex Julia de Annona was enacted during the Roman Republic around 50 B. C. To protect the trade, heavy fines were imposed on anyone directly, deliberately
Free trade is one of the most debated topics in economics of the 19th, 20th, and 21st century. Arguments over free trade can be divided into economic, the World Trade Organization was created to open up markets and promote international trade based on the Free Trade paradigm. The WTO creates and monitors agreements to reduce trade barriers, and arbitrates in disputes over foreign market access and its definition of Free Trade is trade on a level playing field, so that the unlimited exchange of goods between countries is not necessarily Free. Therefore, any import restriction makes the domestic society as a whole worse off than it would be with unlimited imports, the artificial handicap of a foreign subsidy seems much less just to local production than advantages deriving from geography, natural resources, or native skill. Electorates often prefer fairplay to Utilitarian considerations, if trade barriers are already low, the threat of a trade war of tit-for-tat tariff increases may reduce the temptation for either partner in bilateral trade to raise import barriers.
It would tend to decrease the power and revenue flowing to government bureaucrats. In the history of trade, two types of arguments have been advanced in favor of allowing purchases from abroad, and free trade in the broader sense. One set of arguments for free trade could be classified as moral arguments listed below, another set of arguments is essentially economic, that free trade will make society more prosperous. These are mostly technical arguments from the discipline of economics, starting especially with Smiths The Wealth of Nations, the 18th and 19th century intellectuals who backed free trade rarely did so under the rubric of increasing material wealth. In many cases this was given as the least important reason for free trade, they argued that international society would be improved by increased commerce. Some of these, and later, sociopolitical arguments are listed here, adam Smith thought that protectionism against free trade was a scam on the public on behalf of producers, carried out in the name of nationalism.
Even if overall economic interests had not been harmed by tariffs, classical economic analysis shows that free trade increases the global level of output because free trade permits specialization among countries. Specialization allows nations to devote their resources to the production of the particular goods. The benefits of specialization, coupled with economies of scale, increase the production possibility frontier. An increase in the production possibility frontier indicates that the absolute quantity of goods. Not only are the quantity of goods and services higher. Free trade policies are often associated with general laissez-faire economic politics and parties, voluntary exchange, by virtue of its voluntary nature, is assumed to be beneficial to the parties involved—why else would they engage in the exchange. Thus, the restriction of voluntary exchange restricts commerce and ultimately the accumulation of wealth in the absence of real-world externalities such as infant industry protection, here is the production possibilities frontier for a fictional country, Country A
A tax is a financial charge or other levy imposed upon a taxpayer by a state or the functional equivalent of a state to fund various public expenditures. A failure to pay, or evasion of or resistance to taxation, is punishable by law. Taxes consist of direct or indirect taxes and may be paid in money or as its labour equivalent, the legal definition and the economic definition of taxes differ in that economists do not regard many transfers to governments as taxes. For example, some transfers to the sector are comparable to prices. Examples include tuition at public universities and fees for utilities provided by local governments, governments obtain resources by creating money and coins, through voluntary gifts, by imposing penalties, by borrowing, and by confiscating wealth. In modern taxation systems, governments levy taxes in money, but in-kind and corvée taxation are characteristic of traditional or pre-capitalist states, the method of taxation and the government expenditure of taxes raised is often highly debated in politics and economics.
Tax collection is performed by a government agency such as the Canada Revenue Agency, when taxes are not fully paid, the state may impose civil penalties or criminal penalties on the non-paying entity or individual. The levying of taxes aims to raise revenue to fund governing and/or to alter prices in order to affect demand and their functional equivalents throughout history have used money provided by taxation to carry out many functions. A governments ability to raise taxes is called its fiscal capacity, when expenditures exceed tax revenue, a government accumulates debt. A portion of taxes may be used to service past debts, governments use taxes to fund welfare and public services. These services can include education systems, pensions for the elderly, unemployment benefits, energy and waste management systems are common public utilities. A tax effectively changes relative prices of products and they have therefore sought to identify the kind of tax system that would minimize this distortion.
Governments use different kinds of taxes and vary the tax rates, taxes on the poor supported the nobility, modern social-security systems aim to support the poor, the disabled, or the retired by taxes on those who are still working. A states tax system often reflects its communal values and the values of those in current political power. To create a system of taxation, a state must make choices regarding the distribution of the tax burden—who will pay taxes and how much they will pay—and how the taxes collected will be spent. In democratic nations where the public elects those in charge of establishing or administering the tax system, in countries where the public does not have a significant amount of influence over the system of taxation, that system may reflect more closely the values of those in power. All large businesses incur administrative costs in the process of delivering revenue collected from customers to the suppliers of the goods or services being purchased. Taxation is no different, the resource collected from the public through taxation is always greater than the amount which can be used by the government, the difference is called the compliance cost and includes the labour cost and other expenses incurred in complying with tax laws and rules
International Monetary Fund
The International Monetary Fund is an international organization headquartered in Washington, D. C. It now plays a role in the management of balance of payments difficulties. Countries contribute funds to a pool through a system from which countries experiencing balance of payments problems can borrow money. As of 2016, the fund had SDR477 billion, the rationale for this is that private international capital markets function imperfectly and many countries have limited access to financial markets. The IMF provides alternate sources of financing and this assistance was meant to prevent the spread of international economic crises. The IMF was intended to help mend the pieces of the economy after the Great Depression. As well, to provide investments for economic growth and projects such as infrastructure. The IMFs role was altered by the floating exchange rates post-1971. It shifted to examining the economic policies of countries with IMF loan agreements to determine if a shortage of capital was due to economic fluctuations or economic policy, the IMF researched what types of government policy would ensure economic recovery.
Rather than maintaining a position of oversight of only exchange rates and their role became a lot more active because the IMF now manages economic policy rather than just exchange rates. In addition, the IMF negotiates conditions on lending and loans under their policy of conditionality, nonconcessional loans, which include interest rates, are provided mainly through Stand-By Arrangements, the Flexible Credit Line, the Precautionary and Liquidity Line, and the Extended Fund Facility. The IMF provides emergency assistance via the Rapid Financing Instrument to members facing urgent balance-of-payments needs, the IMF is mandated to oversee the international monetary and financial system and monitor the economic and financial policies of its member countries. This activity is known as surveillance and facilitates international cooperation, the responsibilities changed from those of guardian to those of overseer of members’ policies. In 1995 the International Monetary Fund began work on data dissemination standards with the view of guiding IMF member countries to disseminate their economic and financial data to the public.
The executive board approved the SDDS and GDDS in 1996 and 1997 respectively, the system is aimed primarily at statisticians and aims to improve many aspects of statistical systems in a country. It is part of the World Bank Millennium Development Goals, some countries initially used the GDDS, but upgraded to SDDS. The IMF does require collateral from countries for loans but requires the government seeking assistance to correct its macroeconomic imbalances in the form of policy reform, if the conditions are not met, the funds are withheld. The concept of conditionality was introduced in a 1952 Executive Board decision, conditionality is associated with economic theory as well as an enforcement mechanism for repayment
World Customs Organization
The World Customs Organization is an intergovernmental organization headquartered in Brussels, Belgium. The WCO maintains the international Harmonized System goods nomenclature, and administers the technical aspects of the World Trade Organization Agreements on Customs Valuation, in 1947, thirteen European countries established a Study Group to examine customs issues identified by the General Agreement on Tariffs and Trade. This work led to the adoption in 1948 of the Convention establishing the Customs Co-operation Council, on January 26,1953, the CCC’s inaugural session took place with the participation of 17 founding members. WCO membership subsequently expanded to all regions of the globe. In 1994, the organization adopted its current name, the World Customs Organization, today, WCO members are responsible for customs controls in 180 countries representing more than 98 per cent of all international trade. The HS multipurpose goods nomenclature is used as the basis for customs tariffs and it comprises about 5,000 commodity groups, each identified by a six digit code arranged in a legal and logical structure with well-defined rules to achieve uniform classification.
The WCO revised Kyoto Convention is sometimes confused with the Kyoto Protocol, 3) ATA Convention and the Convention on Temporary Admission. Both the ATA Convention and the Istanbul Convention are WCO instruments governing temporary admission of goods, the ATA system, which is integral to both Conventions, allows the free movement of goods across frontiers and their temporary admission into a customs territory with relief from duties and taxes. The goods are covered by a document known as the ATA carnet that is secured by an international guarantee system. 4) The Arusha Declaration on Customs Integrity was adopted in 1993, the Arusha Declaration is a non-binding instrument which provides a number of basic principles to promote integrity and combat corruption within customs administrations. 5) The SAFE Framework of Standards to Secure and Facilitate Global Trade was adopted in 2005, 6) The Columbus Program is a customs capacity building program works to promote customs modernization and implementation of their standards to secure and facilitate world trade.
Because of its complexity, the WCO launched a capacity building program called the Columbus Programme which focuses on needs assessments for WCO Members using the WCO Diagnostic Framework tool. The WCO Secretariat is headed by a Secretary General, who is elected by the WCO membership to a five-year term, the current WCO Secretary General is Kunio Mikuriya from Japan, who took office on 1 January 2009. The WCO is governed by the Council, which brings together all Members of the Organization once a year, additional strategic and management guidance is provided by the Policy Commission and the Finance Committee
An embargo is the partial or complete prohibition of commerce and trade with a particular country or a group of countries. Embargoes are considered strong diplomatic measures imposed in an effort, by the imposing country, embargoes are similar to economic sanctions and are generally considered legal barriers to trade, not to be confused with blockades, which are often considered to be acts of war. In response to embargoes, an independent economy or autarky often develops in an area subjected to heavy embargo, effectiveness of embargoes is thus in proportion to the extent and degree of international participation. Companies must be aware of embargoes that apply to the export destination. Embargo check is difficult for both importers and exporters to follow, before exporting or importing to other countries, they must be aware of embargoes. Sometimes the situation even more complicated with the changing of politics of a country. If an embargo situation exists, the blocks the transaction for further processing.
The Embargo of 1807 was a series of laws passed by the U. S. Congress 1806–1808, during the second term of President Thomas Jefferson. Britain and France were engaged in a war, the U. S. wanted to remain neutral. The American national-interest goal was to use the new laws to avoid war, one of the most comprehensive attempts at an embargo happened during the Napoleonic Wars. In an attempt to cripple the United Kingdom economically, the Continental System – which forbade European nations from trading with the UK – was created, in practice it was not completely enforceable and was as harmful if not more so to the nations involved than to the British. The United States imposed an embargo on Cuba on February 7,1962, referred to by Cuba as el bloqueo, the US embargo on Cuba remains one of the longest-standing embargoes. The embargo was embraced by few of the United States allies, in 1973–1974, Arab nations imposed an oil embargo against the United States and other industrialized nations that supported Israel in the Yom Kippur War.
China, arms embargo, enacted in response to the Tiananmen Square protests of 1989, enacted 1979, increased through the following years and reached its tightest point in 2010. North Korea, luxury goods, enacted 2006 Turkish Republic of Northern Cyprus, consumer goods, live cattle because of cruel slaughter methods in Indonesia. Gaza Strip by Israel since 2001, under blockade since 2007 due to the large number of illicit arms traffic used to wage war. Syria and imports of oil, EU, US, Australia and Norway since August 2014, pork and vegetable produce, fish, cheese and dairy. On August 13,2015, the embargo was expanded to Albania, Switzerland, Iceland, federal Republic of Yugoslavia North Vietnam and Vietnam, trade embargo by the US Republic of Macedonia, complete trade embargo
Bribery is the act of giving money, goods or other forms of recompense to a recipient in exchange for an alteration of their behavior that the recipient would otherwise not alter. Gifts of money or other items of value which are available to everyone on an equivalent basis. Offering a discount or a refund to all purchasers is a rebate and is not bribery. Giving the rebate to influence them to look favorably on the utilitys rate increase applications, however. The bribe is the gift bestowed to influence the recipients conduct, in economics, the bribe has been described as rent. Bribery in bureaucracy has been viewed as a reason for the higher cost of production of goods, one must be careful of differing social and cultural norms when examining bribery. Expectations of when a transaction is appropriate can differ from place to place. Tipping, for example, is considered bribery in some societies, in some Spanish-speaking countries, bribes are referred to as mordida. In Arab countries, bribes may be called baksheesh or shay, french-speaking countries often use the expressions dessous-de-table, pot-de-vin, or commission occulte.
While the last two expressions contain inherently a negative connotation, the expression dessous-de-table can be understood as a commonly accepted business practice. In German, the term is Schmiergeld. The forms that bribery take are numerous, for example, a motorist might bribe a police officer not to issue a ticket for speeding, a citizen seeking paperwork or utility line connections might bribe a functionary for faster service. Bribery may take the form of a commission, a profit made by an agent, in the course of his employment. Euphemisms abound for this Bribers and recipients of bribery are likewise numerous although bribers have one common denominator, Bribery around the world is estimated at about $1 trillion. The reason for this dissociation is to make the steps of a corrupt deal already an offence and, thus. Besides, such a dissociation makes the prosecution of bribery offences easier since it can be difficult to prove that two parties have formally agreed upon a corrupt deal. A grey area may exist when payments to smooth transactions are made, in some countries, this practice is the norm, often resulting from a developing nation not having the tax structure to pay civil servants an adequate salary.
Nevertheless, most economists regard bribery as a bad thing because it encourages rent seeking behaviour, a state where bribery has become a way of life is a kleptocracy
A trade route is a logistical network identified as a of pathways and stoppages used for the commercial transport of cargo. The term can be used to refer to trade over bodies of water, among notable trade routes was the Amber Road, which served as a dependable network for long-distance trade. Maritime trade along the Spice Route became prominent during the Middle Ages, during the Middle Ages, organizations such as the Hanseatic League, aimed at protecting interests of the merchants, and trade became increasingly prominent. In modern times, commercial activity shifted from the trade routes of the Old World to newer routes between modern nation-states. Innovative transportation of modern times includes pipeline transport and the relatively well-known trade involving rail routes, one of the vital instruments which facilitated long distance trade was portage and the domestication of beasts of burden. Organized caravans, visible by the 2nd millennium BCE, could carry goods across a distance as fodder was mostly available along the way.
The domestication of camels allowed Arabian nomads to control the long distance trade in spices, caravans were useful in long-distance trade largely for carrying luxury goods, the transportation of cheaper goods across large distances was not profitable for caravan operators. With productive developments in iron and bronze technologies, newer trade routes—dispensing innovations of civilizations—began to rise, evidence of maritime trade between civilizations dates back at least 90 millennia. Navigation was known in Sumer between the 4th and the 3rd millennium BCE, and was known by the Indians. The Egyptians had trade routes through the Red Sea, importing spices from the Land of Punt, maritime trade began with safer coastal trade and evolved with the manipulation of the monsoon winds, soon resulting in trade crossing boundaries such as the Arabian Sea and the Bay of Bengal. South Asia had multiple maritime trade routes which connected it to Southeast Asia, Indian connections to various Southeast Asian states buffered it from blockages on other routes.
By making use of the trade routes, bulk commodity trade became possible for the Romans in the 2nd century BCE. A Roman trading vessel could span the Mediterranean in a month at one-sixtieth the cost of over-land routes, the peninsula of Anatolia lay on the commercial land routes to Europe from Asia as well as the sea route from the Mediterranean to the Black Sea. Records from the 19th century BCE attest to the existence of an Assyrian merchant colony at Kanesh in Cappadocia, trading networks of the Old World included the Grand Trunk Road of India and the Incense Road of Arabia. Parts of the Mediterranean world, Roman Britain, Tigris-Euphrates river system, beyond this was a margin which included not only temperate areas such as Europe, but the dry steppe corridor of central Asia. This was truly a world system, even though it occupied only a portion of the western Old World. Whilst each civilization emphasized its ideological autonomy, all were part of a common world of interacting components.
These routes - spreading religion and technology - have historically been vital to the growth of urban civilization
Fair trade is a social movement whose stated goal is to help producers in developing countries achieve better trading conditions and to promote sustainable farming. Members of the movement advocate the payment of prices to exporters. The movement seeks to promote equity in international trading partnerships through dialogue, transparency. It promotes sustainable development by offering better trading conditions to, and securing the rights of, Fair trade is grounded in three core beliefs, producers have the power to express unity with consumers. Secondly, the trade practices that currently exist promote the unequal distribution of wealth between nations. Lastly, buying products from producers in developing countries at a price is a more efficient way of promoting sustainable development than traditional charity. Specifically, fair trade is a partnership, based on dialogue and respect. There are several recognized fair trade certifiers, including Fairtrade International, IMO, Make Trade Fair, in 2008, Fairtrade International certified approximately of products.
The World Trade Organization publishes annual figures on the trade of goods. The fair trade movement is popular in the UK, where there are 500 Fairtrade towns,118 universities, over 6,000 churches, according to Fairtrade International, nearly six out of ten consumers have seen the Fairtrade mark and almost nine in ten of them trust it. Some criticisms have been raised about fair trade systems, some research indicates that the implementation of certain fair trade standards can cause greater inequalities in some markets where these rigid rules are inappropriate for the specific market. In the Fair trade debate there are complaints of failure to enforce the fair trade standards, with producers, there are a large number of fair trade and ethical marketing organizations employing different marketing strategies. Most fair trade marketers believe it is necessary to sell the products through supermarkets to get a sufficient volume of trade to affect the developing world, the Fairtrade brand is by far the biggest of the fair trade coffee brands.
Packers in developed countries pay a fee to The Fairtrade Foundation for the right to use the brand and logo and retailers can charge as much as they want for the coffee. The coffee has to come from a fair trade cooperative. Additionally, the cooperatives are paid an additional 10c per lb premium by buyers for community development projects, the cooperatives can, on average, sell only a third of their output as fair trade, because of lack of demand, and sell the rest at world prices. The exporting cooperative can spend the money in several ways, some is spent on social projects such as building schools, health clinics and baseball pitches. Sometimes there is left over for the farmers