The Role of Hong Kong in International Trade Research Paper - 1

The Role of Hong Kong in International Trade - Research Paper ExampleThe greatest financial activity in Hong Kong is international trade and its government policies in terms of trade demonstrate its position as a hub for free trade. These policies comprise of minimum constraints and permit the mart dynamics to standardize exportation and importation activities. It thus prohibits protective actions such as tariffs and rations as well as subsidizations as a method of circumventing deficits that may be experienced in balances-of-trade. Much of the impetus driving the changing patterns of global trade since 1950 can be attributed to the role played by international corporations which atomic number 18 sometimes called multinational corporations. Development of Hong Kongs import and export industry.The activities associated with the import and export industry can be categorized as imports, domestic exports and re-exports and Hong Kong have embraced a free trade policy while erecting li mited barriers to trade. Adopting pro-export policy promoting exports through tax breaks, subsidies, and tariffs, and at the same time discourage imports through taxes, duties, or quotas, is a common practice among emerging markets and developing nations.There is no imposition of tariffs in Hong Kong in regard to importing and exporting goods, and the licensing requirements are maintained at a minimum. The imposition of licensing only takes place in the event that there is a genuine need for meeting obligations that are undertaken by Hong Kong to its partners in trade.