Firstly, according to the Trade and Development Report (1996) published by United Nations Conference on Trade and Development (UNCTAD), the manufacturing sector is categorized into five categories based on the labour skill, technologies, and capital required in the industries. It is started with primary commodities consisting of raw materials which are extracted or harvested and require minimal processing such as processed food. The second category is ‘labour-intensive and resource-based industries’. This category is …show more content…
Generally, trade policies are categorized into two which are tariff and non-tariff measures. Tariff is the most popular policies used to restrict trade. However, the world wide admission of trade liberalization causes countries reduce the use of tariff instruments. Therefore, another way to restrict trade is non-tariff measures (NTMs) instruments, consequently the number of countries applying NTMs increase and its coverage of products becomes wider (World Bank and IMF, 2008). Hoekman and Nicita (2011) verify that the use of NTMs instruments represents the development of a country. A more develop country will apply more NTMs. It is proved by the high number of developed countries exploit