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Title: Environmental Regulations used as Trade Barriers
Description: Essay is about the environmental regulations that are used as Trade Barriers, and how companies are affected by such. The essay was for a course in International Business.

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Essay  How  Environmental  Regulations  Can  Be  Used  As  
Trade  Barriers  &  Embraer  And  Bombardier  
 

INTERNATIONAL  BUSINESS  

Throughout  history,  society  has  been  modifying  their  goods  and  services  to  fit  a  
consumer’s  particular  needs
...
 If  these  transformations  were  successful,  the  trade  between  
regions  came  in  place
...
 However,  from  
an  ethical  point  of  view,  those  changes  usually  caused  environmental  issues,  
which  were  not  being  taken  into  consideration,  and  are  until  this  day  still  not
...
 But  this  also  means  a  decrease  in  the  range  of  products  the  country  
can  offer  its  people
...
 However,  all  these  so  said  beneficiary  improvements  for  the  economy  of  
the  country  usually  mean  an  increase  in  environmental  and  health  issues
...
   
 
Though,  most  governmental  parties  “force”  their  domestic  organizations  
to  follow  certain  measures  –  “phytosanitary  measures”  –  which  allow  
governments  to  make  sure  products  that  are  imported  do  not  contain  any  
diseases,  insects  or  other  issues  that  could  affect  the  country’s  environment
...
 
According  to  The  General  Agreement  on  Tariffs  and  Trade  (GATT),  “no  Member  
should  be  prevented  from  adopting  or  enforcing  measures  necessary  to  protect  
human,  animal  or  plant  life  or  health,  subject  to  the  requirement  that  they  are  
not  applied  in  a  manner  which  would  constitute  a  means  of  arbitrary  or  
unjustifiable  discrimination  between  Members  where  the  same  conditions  
prevail  or  a  disguised  restriction  on  international  trade
...
 This  affects  both  domestic  and  foreign  regions,  
and  decreases  their  trade,  which  in  relation  also  diminishes  their  economy
...
american
...
htm    
 

Essay  by  Cezanne  Kooter  
United  International  Business  Schools    
28th  of  November  2016  

Essay  How  Environmental  Regulations  Can  Be  Used  As  
Trade  Barriers  &  Embraer  And  Bombardier  

INTERNATIONAL  BUSINESS  
 
book  “International  Business”
...
’  In  reality,  those  glass  bottles  were  more  
expensive  to  transport  across  the  country  than  the  aluminum  cans  due  to  the  
weight  difference
...
2  
Another  example  is  the  Hormone  Ban  in  the  case  EUMEAT,  where  it  has  
been  argued  by  the  EU  that  the  hormones  that  have  been  used  by  US  meat  
industries  to  improve  the  growth  rate  of  animals,  saving  time  and  money  for  the  
farmers,  and  result  in  lower  costs  for  both  feeding  and  boarding  livestock,  would  
harm  and  may  cause  health  problems  to  consumers
...
3  
 
Barriers  to  trade  are  often  introduced  on  the  basis  of  insufficient  research  
regarding  the  long-­‐term  effects  of  a  given  development,  or  a  difference  between  
national  production  processes
...
 Fearing  these  improved  products,  many  
countries  have  attempted  to  ban  their  importation  in  an  effort  to  "protect"  
citizens  from  their  harmful  effects
...
 A  
government  might  apply  restrictions  on  the  imports  of  products  from  one  
country,  whilst  not  applying  these  same  restrictions  to  a  different  country
...
   A  country  might  have  a  
competitive  disadvantage  in  the  international  market  due  to  the  fact  that  the  
regulations  are  too  much  restricted  on  environmental  or  health  regulations,  
whereby  other  countries  do  not  take  these  factors  into  considerations  and  
therefore  are  on  the  higher  level  of  competition
...
 
Governments  might  interfere  as  well  if  they  notice  that  their  country  has  the  
ability  to  be  more  part  of  a  specific  international  industry,  and  might  take  away  
the  regulations  for  particular  products,  with  the  use  of  the  GATT
...
 They  might  develop  other  incentives  
to  go  against  the  environmental  issues  being  caused  by  domestic  producers,  and  
invest  in  this  so  that  they  can  enhance  their  productivity  at  the  same  time  that  
they  innovate  on  safer,  and  less  polluting  ways  of  production
...
 Bombardier”
...
american
...
htm    
4  http://www
...
org/docs/008-­‐067/chpt4
...
 For  Bombardier,  it  has  been  the  case  that  they  have  had  access  to  
top-­‐of-­‐the-­‐line  technology  and  low-­‐interest  loans  due  to  the  fact  that  they  are  
located  in  Canada,  which  is  an  industrialized  country
...
 Both  
companies  have  therefore  competitive  advantage  on  the  other,  as  they  each  have  
specific  benefits  that  the  country  has  to  offer
...
 5  
 
In  1996,  Canada  claimed  at  the  World  Trade  Organization  that  the  
Brazilian  state  was  subsidizing  Embraer’s  costs,  whilst  Brazil  did  the  same,  and  
also  went  to  the  World  Trade  Organization
...
 As  
a  reaction  to  this,  Canada  punished  Brazil  by  putting  up  a  temporary  ban  on  
Brazilian  beef  because  they  argued  that  it  could  contain  a  cow  disease,  which  
could  affect  the  environment  of  Canada
...
 Because  Canada  
is  in  the  NAFTA,  it  also  obligated  both  the  United  States  and  Mexico  to  ban  the  
imports  of  Brazilian  beef
...
 In  response  to  this,  Brazil  put  up  protests  and  boycotts  
against  Canada
...
 6  
 
In  this  is  to  see  that  both  governments  tried  to  punish  each  other  to  
strengthen  its  position  in  the  aircraft  industry,  by  putting  up  “false”  statements  
about  other  industries  in  the  foreign  rivalry  country
...
   
 
The  accessory  benefits  a  country  has,  such  as  a  countries  regular    
donations,  the  size  of  its  labor  force,  the  interest  rates  and  the  value  of  its  
currency  do  affect  their  stand  in  the  international  trade,  but  it  does  not  define  it  
completely
...
 By  using  pressure  and  challenging  the  rivalry  parties,  
companies  gain  competitive  advantage  against  the  world’s  largest  competitors
...
   
 
   
As  nowadays,  almost  all  goods  and  services  exist,  nations  rely  mostly  on  
Research  and  Development,  innovation,  improvements,  increase  in  knowledge  of  
                                                                                                               
5  Real  Case  Bombardier  and  Embraer  
6  https://en
...
org/wiki/Brazil%E2%80%93Canada_relations    
 

Essay  by  Cezanne  Kooter  
United  International  Business  Schools    
28th  of  November  2016  

Essay  How  Environmental  Regulations  Can  Be  Used  As  
Trade  Barriers  &  Embraer  And  Bombardier  

INTERNATIONAL  BUSINESS  
 
the  international  market,  etcetera
...
 However,  a  country  has  to  keep  
relying  most  on  what  they  are  best  producing
...
   
 
Due  to  increased  competition  in  a  specific  industry,  nations  might  merge  
together,  to  stand  stronger  in  the  international  market,  and  gain  a  higher  market  
share
...
   
 
Companies  around  the  world  must  apply  a  specific  strategy  to  overcome  most  of  
the  competition,  and  then  work  together  with  the  remaining  competitors
...
 Unless  the  market  is  so  fragile,  and  the  biggest  competitor  has  so  
much  capital  that  it  has  the  power  over  the  entire  market
...
 So  rather  than  investing  time  and  money  for  the  cause  of  
overcoming  the  competition,  investing  in  solutions  that  would  benefit  both,  and  
obtaining  each  others  resources
Title: Environmental Regulations used as Trade Barriers
Description: Essay is about the environmental regulations that are used as Trade Barriers, and how companies are affected by such. The essay was for a course in International Business.