Tariff and non-tariff barriersTariff and non-tariff transactions affect global financing operations by impacting the willingness of countries to create and invest in businesses in the country of origin. If an organization wants to start a business that imports raw materials subject to customs duties, this would make the product significantly more expensive to produce and export. Tariffs benefit the government by increasing revenue and also benefit domestic businesses by decreasing foreign competition. Tariffs also help protect jobs in the sector which has eliminated foreign competition, but their negative impact is felt because they force the consumer to pay more for an imported product (Hill, 2004). If a country is inclined to impose customs duties on items that an organization might need, this would increase the risk of doing business while located in that company. Asking a country to manufacture or produce a product that can be produced more cheaply elsewhere is not a wise use of resources and harms global trade. When foreign countries can enter a home country and sell products more cheaply, people usually see it as a great opportunity. business opportunity. However, if this product is manufactured in the country of origin, not only does the country lose revenue from sales of this product, but the economic impacts can be even more profound. No longer needing to manufacture this product, companies will no longer need to purchase the raw materials or hire the employees necessary to maintain demand. To prevent this from happening or to impose some type of trade restriction on a foreign country, tariffs and non-tariffs are used. The General Agreement on Tariffs and Trade (GATT) was replaced by the World Trade Organization which monitors tariffs and promotes free trade (Hill, 2004). Tariffs can protect local industries facing competition from imported products by imposing tariffs. Tariffs are effective and widely used to protect local industries from foreign competition (Saranovic, 2006). However, this protection comes at an economic cost, since consumers must pay a higher price for imported products, which effectively reduces their purchasing power and leads to an inefficient allocation of resources. The tariff is a tax applied to an import and is one of the oldest trade policies in force. This tax generally constitutes revenue for the government of the host country. There are two types of rates; specific tariff and ad valorem tariff (Hill, 2004). A specific tariff applies a fixed tax to a certain import.