Question

Discuss the impact of at least 2 instruments of government intervention relevant to the overseas operation of AfterPay Touch.

(The 6 Types of Government Intervention)
1. Protectionism - National economic policies that restrict free trade. Usually intended to raise revenue or protect domestic industries from foreign competition.
2. Customs - The checkpoint at national ports of entry where officials inspect imported goods and levy tariffs.
3. Tariff - A tax on imports (e.g., autos, textiles)
4. Non-Tariff Trade Barrier - Government policy, regulation, or procedure that impedes trade
5. Quota - Quantitative restriction on imports of a specific product
6. Investment Barriers - Rules or laws that hinder foreign direct investment

Answer 1

Answer:

AfterPay Touch is an international financial company that helps the payment process for the commercial purchase at the global level. This company helps in making the payment at global level in the global market.

The impact of at least 2 instruments of government intervention relevant to the overseas operation of AfterPay Touch is as below

1. Protectionism – AfterPay touch need to comply with requirements of protectionism at the national level, because this is the government intervention which restrict the foreign trade unless it is approved by the government. So AfterPay touch need to seek adequate certifications and approval from government to seek permission under protectionism and get the certified agency that can make payments at foreign products. AfterPay Touch needs to plan their business plan for their financial proposals, based on the approval from government with applicable terms and conditions. Thus AfterPay Touch need to adhere and comply with the regulations as per protectionism government intervention.

2. Customs – This is another important government intervention that any foreign agency or business need to comply with it and adhere to its requirements. This is being checked at the port side and it calls for 100% compliances with respect to the custom clearance. So AterPay Touch should comply with the custom procedure, approvals and certifications so that they can manage the requirements of custom and their financial services can be executed as per their plan with meeting and exceeding the custom requirements. Without compliance to custom requirements, AfterPay Touch cannot make business transactions.