Influence Of Non Tariff Barriers On The Operations Of Selected Kenyan Firms Within The East African Community
Abstract
In the introductory chapter, the study explores the concept of international business and
the benefits associated with free trade; within the context of the East African Community
(EAC) regional economic grouping. The Study is however limited to identifying Non
Tariff Barriers (NTBS) as some of the main constraints affecting free trade. In terms of
scope, the study explores the influence of Non-Tariff Barriers (NTBs) on the operations
of selected Kenyan firms doing business in the East African region.
Chapter two discusses various theoretical perspectives on International business and free
trade. The chapter provides a conceptual overview on the theoretical foundations and
models available on genesis and evolution of free trade; and how free trade impacts on
global trading and regional integration.Modern theoretical models and new trade theorists
such as Krugman etal (1991) argue that there is no level playing field in international
trade and that free trade is isn't always benign. There are inherently different views for
instance on benefits brought about by regional integration and global trading.
Chapter three explored the methodology of study. Descriptive research was used to
describe the characteristics of the population studied. A Survey of 40 Kenyan firms doing
business within the East African Community region were chosen as the sample size. Data
was collected by use of questionnaires which were emailed to respondents, or dropped
and picked. The results were analysed statistically.
Chapter four entails data analysis, results and discussion. The chapter featured a detailed
analysis of the Non Tariff Barriers (NTBs) influencing the operations of selected Kenyan
firms doing business in the East African Community region. The sampled firms were
further categorized into manufacturing, transport and communications, Wholesale and
retail and agro-industry. The survey results were analysed and presented inform of
frequency tables, charts and graphs. Chapter five discusses the summary of the findings;
conclusions and policy recommendations thereof. The study results show that Non Tariff
Barriers are highly rampant within East Africa. The main investments affected are firms
in the manufacturing sector. Kenya firms are the big players in the region and therefore
do suffer business loss due to the resultant Non Tariff Barriers. To create a level playing
field in the region, and to advance further the tenets of free trade, the study recommends
harmonisation of national laws and policies in East Africa to streamline the business
environment.
Citation
Master Of Business Administration, University Of Nairobi, 2013.Publisher
University of Nairobi School of Business