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Bachelor Thesis from the year 2021 in the subject Economics - International Economic Relations, grade: 1,3, Ruhr-University of Bochum, language: English, abstract: This paper aims to analyze the substitution relationship between the two policy tools: tariffs and non-tariff measures. The empirical part will also compare the substitutability among developed and developing countries, as well as among various industries in an economy. The role of tariff binding overhang as a mediator that influences how non-tariff measures are used in place of tariffs will also be discussed. Lastly, an outlook on the global progress towards free trade will inevitably have an impact on the wider health and environmental aspects. Therefore, the last part of this paper will discuss how the substitution of tariffs to NTMs can link to these broader dimensions, as well as what additional changes are necessary to ensure that a country¿s economic goal aligns with its aim towards environmental protection.
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