Studying the Effect of Import Restrictions on the Food Sector and its Consumers

Abstract

Nowadays, global trade is a necessary component of most economies. In recent years, numerous countries have put in place a variety of trade policies to regulate goods coming in and out of the country. Often, these policies cause other countries to react and change their trade policies, which can lead to the so-called ‘wars’. Government changes in this area can affect organizations significantly if they rely on imports or exports within their supply chain. Moreover, customers are also affected by trade policy changes when they acquire goods that are either imported or have imported omponents. The scope of this article was limited to the food industry. Therefore, only the impact of new trade restrictions on this sector was studied. A mathematical model was developed to correlate changes in import tariffs with export reductions within this industry. Similarly, another model was created to better understand the impact of import tariffs on consumers and their households. Keywords – Consumer Price Index (CPI), Food Sector, Imports, Tariffs.