ASEAN FREE TRADE HOW TO IMPACT LOCAL PRODUCT

Free trade is an economic concept that refers to the sale of products between countries without export taxes or other trade barriers. free trade can also be defined as the absence of artificial barriers (obstacles made by the government) in trade between individuals and companies in different countries.

Free trade means that there is no interference from the government that impedes trade activities both carried out between individuals and between companies within countries.

With this free trade system, trade between countries is no longer complicated by bureaucratic matters. The establishment of free trade is to increase cooperation in the economic field and improve the welfare of the country. With the free trade it is hoped that countries can easily carry out their economic activities. The idea of forming this free trade is that frequent international trade is hampered by tax problems, various additional costs, and many other obstacles.

The benefit of free trade which can be seen directly is the diversity of goods available. With the existence of diverse items it is hoped that the people will prosper because they will have many choices of the best products they need.
The business of basic needs is one of the right businesses, especially in the city of Surabaya.

Surabaya Food Suppliers or Surabaya Rice Agents are very easy to develop, especially basic needs are the basic needs of certain people who are sure to sell well in the market. The increase in food prices at the producer level indicates a stronger purchasing power of the market or consumers so that the strong purchasing power of the market means that more and more does not require price controls to protect farmers and their minimum income.

One alternative to controlling food prices in the era of free trade is using the import export tax harvesting system. The imposition of flexible food export tax will be able to keep isolating domestic food prices from the influence of food prices abroad.

The tendency of increasing food exports due to attractive world prices can be reduced by export taxes, if domestic is in need of food. This tax imposition mechanism is very useful in the government’s efforts to maintain stable prices at the domestic consumer level. Taxation is intended so that the supply of food in the country is sufficient and prices do not increase beyond the purchasing power of low-income people. In order to protect domestic producers, the government can make progressive import taxes so that the domestic market is not flooded with imported food which can reduce prices at the producer level.

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