ABSTRACT
Nontariff barriers (NTB) have gained increasing prominence as impediments to market access. They pose difficult problems for both small and large companies. These barriers are less constrained by international trade law than are tariffs, are more subtle in their application and potentially more restrictive than tariffs in their effect. The belief that NTBs influence the technology-related behavior of US firms flows from a number of facts. The chapter provides two phenomena that have grown in importance. The first is the proliferation of NTBs adopted by foreign governments, especially those of the developed nations. The second phenomenon is the increased volume, range, and importance of technology-related decisions by US firms. A goal of NTBs is to isolate individual national markets from the world market so that foreign companies with production advantages that depend on economies of scale, worldwide marketing programs, and worldwide financial sourcing cannot exploit the advantages in the local market that is small and specialized.
