Give me a summary for the following essay: • Marketing barriers of Tunisia – POINT 2

 Politics

1. Legal and regulatory barriers: Tunisia’s legal and regulatory framework can be challenging to navigate for international businesses. The process of obtaining necessary permits, licenses, and adhering to local regulations can be time-consuming and complex.

2. Bureaucracy and administrative delays: El Wahy may face bureaucratic hurdles and lengthy delays in establishing a presence in Tunisia, including company registration, securing necessary permits, and licensing processes.

3. Political and social instability: Tunisia has faced periods of political and social unrest and instability, which can pose risks for international businesses. Moreover, security concerns in the region can impact business operations and overall investment climate.

Culture and religion

International businesses may face challenges communicating effectively and understanding local market preferences and cultural nuances. Despite having plenty of secular influences on Tunisian society, foreign businesses are expected to adhere to Islam’s dietary restrictions, considering that the majority of Tunisians are Muslim. El Wahy has an advantage in that area and should find no difficulties adhering to that.

Language

Tunisia is an Arabic-speaking country, and French is widely spoken as a second language. For El Wahy, getting used to the strong local dialect will be the most challenging.

Tariff barriers

Tunisia’s tariff barriers primarily include import duties and taxes levied on imported goods. The level of these tariffs varies depending on the type of product, with some goods facing high tariffs while others face lower or even no tariffs. Here are some notable aspects of Tunisia’s tariff barriers:

1. Tunisia is a member of the World Trade Organization (WTO) and has commitments to reduce its tariff levels over time, in line with WTO agreements.

2. Tunisia has a relatively simple tariff structure, with most imports subject to a duty rate of either 0%, 15%, or 30%.

3. Products considered essential or necessary for the functioning of the economy, such as raw materials or capital goods, generally face lower tariffs.

4. Products that compete with domestic industries, especially those deemed strategic, are subject to higher tariffs in order to provide protection for local industry. This is especially true for agricultural and food products, textiles, and footwear.

5. Tunisia has preferential trade agreements with several countries and economic blocs, including the European Union, under which it applies reduced or zero tariffs on certain products from those countries or blocs.

6. In addition to import duties, there are other taxes imposed on imports, such as the value-added tax (VAT), which varies between 7% and 19% depending on the product, and a consumption tax on certain products like tobacco, alcohol, and luxury goods.

7. Some non-tariff barriers also exist in Tunisia, including import licensing requirements, strict standards regulations, and bureaucratic procedures that can make the import process more difficult or time-consuming.

Overall, while Tunisia has been liberalizing its trade regime and reducing tariff levels in accordance with WTO agreements and bilateral trade deals, certain sectors of the economy still face significant tariff barriers in order to protect domestic industries.

Variations in exchange rates

Exchange rate fluctuations can pose challenges for international marketing efforts in Tunisia. Some of the key barriers related to exchange rate volatility include:

1. Increased costs: When the value of the Tunisian Dinar depreciates against major international currencies, it increases the cost of importing goods or services, materials, and resources needed for marketing efforts. This could lead to higher prices for consumers and reduced competitiveness in the market.

2. Uncertainty in pricing: Exchange rate fluctuations can create uncertainties in pricing for both importers and exporters. Businesses may find it difficult to set appropriate prices for their products or services due to unpredictable shifts in currency values.

3. Reduced profits: Depreciation of the Tunisian Dinar could result in lower profits for businesses that rely on international sales or imports. For example, if El Wahy’s services are priced in a foreign currency, the depreciation of the Dinar may result in lower revenue when converted back to the local currency.

4. Economic instability: Currency fluctuations can contribute to economic instability, which further creates barriers for international marketing. Businesses may be hesitant to invest in marketing efforts during uncertain economic conditions, and consumer confidence may be weakened, reducing demand for products or services.

5. Impact on tariffs and trade barriers: Exchange rate movements can impact tariffs and other trade barriers, creating additional challenges for international marketing. As the value of the Dinar changes, it may affect the balance of trade between Tunisia and its trading partners, potentially resulting in the imposition of new trade barriers or adjustments to existing ones.

6. Difficulty in budgeting and planning: Currency fluctuations make it challenging for businesses to plan and forecast marketing budgets accurately. Unforeseen changes in exchange rates can lead to unexpected costs or reduced revenues, impacting the overall marketing strategy.

To overcome these barriers, El Wahy should monitor exchange rate fluctuations closely and implement appropriate risk management strategies. Some approaches may include using financial instruments such as forward contracts or options to hedge against exchange rate risk, diversifying marketing efforts across different countries or regions, and adjusting pricing strategies based on exchange rate movements.