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Thread: Tariffs on foreign direct investment

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    Featured Member aussiebelle's Avatar
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    Default Tariffs on foreign direct investment

    I'm trying to do my assignment for uni on foreign direct investment by an Australian company in Indonesia and I'm just seeking clarification on when tariffs are enforced on goods/services.

    If an Australian company has developed itself in a foreign country such as Indonesia, are tariffs placed upon the goods that are produced by that multinational organisation because it is a foreign company or are tariffs only placed on goods produced by a company when produced outside of the country and then imported in?

    Thanks in advance for any help on the topic

    I've been trying to search for information but can't find anything that specifically answers my question.
    Some mistakes are too much fun to only make once.

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    God/dess hockeybobby's Avatar
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    Default Re: Tariffs on foreign direct investment

    I will speculate a little to give you some ideas. Whether or not tariffs will apply to imported goods will be determined by the legislation existing in the importing country. The tariffs will be dependant on what the goods are, and where they originate from. A good produced in Indonesia, will not likely be subject to import tariffs as it is already in the country.

    As a general rule, countries will have tariffs on goods to protect a domestic industry, or to otherwise promote a nations policy goals. A corporation may set up a factory in another country in order to take advantage of sales in that countries market, whether the aim is to avoid tariffs, or to comply with some other non-tariff type barrier or policy.

    I'll keep an eye on this thread as you flesh it out a bit.

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    Featured Member aussiebelle's Avatar
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    Default Re: Tariffs on foreign direct investment

    Thanks bobby
    Some mistakes are too much fun to only make once.

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