Government assistance on both internal and external trade

The government perform the following function.

1. Protective functions. The government is responsible to maintain peace and security in the country and to defend the country against external aggression. For this purpose the government maintain police and the armed forces.
2. Administrative functions. The government is responsible for the administration of the country. Various administrative departments are established by government for this purpose.
3. Social functions. The government provides social services to public like education, health, housing, transport and communication etc. These services are vital for the welfare of the society.
4. Development functions. The development of different sections of the economy is not possible without the state help. The government should develop irrigation, transportation and communications, industrial and agricultural systems of the country for the rapid increase in the rate of economic growth.
5. Makes policies and laws and implement them so as to promote development of country.
6. Trade function. Facilitates trade within and outside the country.

Business applies to any activity carried with an intension of making profit while standing a risk of loss. Business can be in form of trading, farming, transportation, communication, insurance etc.

In economic theory business play two roles:

1. They enter the market place as producers of goods and services bought by consumers.
2. They buy factor inputs from households in order to produce those goods and services. They are using various economic resources efficiently in order to attain high profits at a less cost.

The government can involve in business activities as follows:

1. Carrying out trading activities directly. For this purpose, public corporations, parastatals, marketing bodies and local authorities are set up. These government bodies may be responsible for the production of some specific items or provision of specific services.
2. Controlling the activities of the private sector. This is done by ensuring the production of better quality goods and protect the interests of the consumers. The government can control the activities of the private sector in various ways, such as consumer protection.
3. Consumer protection. Is the policy taken up by the government to protect consumers from being exploited.
4. The government buys shares in private companies.

Meaning: This is the policy taken up by law to protect consumers from being exploited by the business world. A consumer needs protection because he or she has to get support against unfair practice from seller includes

1. Unfair Pricing: Consumers may be charged higher prices than necessary or unfairly manipulated by businesses into paying excessive amounts for goods or services. Without proper regulations, businesses might take advantage of consumers, especially in monopolistic or oligopolistic markets.
2. Misleading Advertisements: Companies may engage in deceptive advertising that misrepresents the qualities or benefits of a product. This includes false claims or exaggerations about what a product can do, leading consumers to make purchases based on incorrect information.
3. Selling of Defective or Expired Goods: Some businesses may sell goods that are defective, of low quality, or past their expiration date. Consumer protection laws ensure that businesses are held accountable for selling safe, functional, and valid products to consumers.
4. False Descriptions: Companies may provide misleading descriptions of their products or services, making them appear better or more beneficial than they truly are. Consumer protection laws ensure that all information provided is accurate and truthful.
5. Wrong Quotation of Weights and Measures: There may be instances where businesses misrepresent the quantity or size of products sold by quoting incorrect weights and measures. For example, a product might be sold as 1kg but is actually only 900g. Consumer protection laws regulate the accuracy of measurements in trade.
6. Ignorance of Basic Rights: Many consumers are unaware of their rights regarding refunds, exchanges, product warranties, and other important consumer protections. Laws and advocacy groups work to educate consumers about their rights and ensure businesses respect them.
7. Selling of Unhygienic Goods (e.g., foodstuffs): In the case of food products or other consumables, businesses might sell goods that are unsafe, unsanitary, or not properly stored. Consumer protection policies help ensure that businesses adhere to health and safety standards when selling food and other consumables.

1. To avoid overcharging. Many suppliers exaggerate the expenses they incur when buying goods from manufacturers. These traders give excuse such as high transport charges, taxation (e.g. VAT) and rental charges so that they can charge consumers very high prices.
2. To ensure correct weights and measures are used. Some traders use the wrong measurements and weights when selling goods to customers thus cheating them. This is very common with goods such as sugar, salt, beans, maize and wheat flour, rice which traders sell in small, weighed units.
3. To guarantee safety of foodstuffs and drinks. Some traders sell foodstuffs and drinks from unhygienic places and other traders sell foodstuffs and drinks that are out of date, half-cooked or stale. To protect consumers, therefore the Ministry of Health sets up standards which must be met by traders engaged in the sale of foodstuffs and drinks.
4. Eliminating misleading advertisements. Many business owners use persuasive, attractive and misleading advertisements to persuade customers to buy goods from them. Today it is common to find such advertisements "IT WASHES WHITER THAN WHITE". This is not true as there is nothing whiter than white either something is white or not white but not whiter. Also some dealers of used vehicles display misleading adverts on television showing such vehicles jumping over buildings. This is very misleading as there is no vehicles which can go over building unless it is an Aeroplan. Many cosmetics advertisements have misleading phrases, pictures and slogans.
5. To avoid sale of out of date (expired) drugs. In rural areas where drugs are scarce, drug dealers sell out of dated drugs to unsuspecting illiterate consumers. Also some people pretend to be doctors and prescribe wrong doses of drugs to consumers.
6. Consumer ignorance of their rights. Many customers do not know their rights. Therefore it is the duty of the government to protect them.

The basic consumer rights includes the following:

1. Right to safety. This means that right to be protected against the marketing of goods and services which are hazardous to life and property. The goods and services available for sale should not only meet their immediate needs but also fulfilling long term interests.
2. Right to be informed. It means to be informed about the quality, quantity, potency, purity, standard and price of goods so as to protect the consumer against unfair trade practices.
3. Right to choose. This means right to be assured, wherever possible of access to variety of goods and services at a competitive price.
4. Right to seek redressing. Means to seek redressing against unfair trade or unscrupulous exploitation of customers. It also include right to fair settlement of genuine grievances.
5. Right to be heard. The right to be represented in various forums formed to be consider consumers welfare.
6. The right to satisfaction of basic needs. It means to have access to basic essential goods and services, adequate food, clothing, shelter, health care, education and sanitation.
7. The right to health environment. It means to live and work in environment which is not threatening to the well being of the present and future generation.

There are three major ways of protecting consumers:

1. Government initiated methods.
2. Consumers initiated methods.
3. Business initiated methods.

Government initiated methods

The government protect the consumers in the following ways as the measures adopted by the government to protect consumers. In Tanzania the government has established some institutions to protect the rights of consumers including.

a. Weights and measures Department. This requires businessmen to use recommended weights and measurements when selling goods to consumers. It requires manufactures to indicate the correct weight on the goods or on the packing material. This department is under Ministry of commerce and industries who officials travel around the country to check and confirm the efficiency of the weighing scale.

b. Setting up bureaus of standards. These set up standards for the quality of various products made or imported into the country. A standards bureau has a standardization mark that it puts on any goods to be tested and approved. An example of such a bureau is the Tanzania Bureau Standards (TBS)

Functions of Tanzania Bureau of Standards (TBS)

Tanzania Bureau Standards is a government agency whose function is

1. To ensure that high quality of goods produced by manufacturers by taking random samples.
2. To take action against manufacturers who produce inferior goods.
3. To ensure the quality standards of the product are maintained, produce locally or imported from other countries.
4. Preparation of the standards relating to products, measurements, materials, quantity, weight and moisture content etc.
5. Certification of industrial products.
6. Quality inspection of imports at legal ports of entry.
7. Improvements of measurement accuracies and dissemination of information relating to standards.
8. To keep close liaison with and render efficient service to industry, trade and commerce in direct parts of the country.

c. Price control Act This Act is meant to safeguard consumers from being overcharged. The government fixes the price of certain goods especially essential commodities, so that the traders do not sell above the fixed price. This is very common with essential commodities like sugar. Salt, soap etc. These price are published by the Minister of finance when presenting the National budget every year.

d. Business premises Rent Tribunal This tribunal ensure that reasonable rents are charged by the landlords from their tenants.

Laws used by government to protect consumers (Legal measures)

The various laws used by the government to protect consumers include the following

a. Sale of goods Act This affords protection by setting down conditions and warrantees expressly by the seller to the buyer. The Act provides for five conditions and two warranties in the protection or vulnerable position of the buyer.

Conditions

1. The seller has the legal right to sell the goods.
2. The goods sold by descriptions do in fact correspond with the description.
3. That the goods are reasonably for the purpose intended by and made known to the buyer.
4. That the goods are of merchantable quality.
5. That when goods are sold by sample, the actual goods sold are of the same quality as the sample.

Warranties.

1. That the goods are free from any charge in favor of third person.
2. That the buyer shall have and enjoy quite possession of goods purchased.

b. Food and Drugs Act This provides protection of the public by prohibiting adulteration of foods, medicines etc. They require manufacturers to list the ingredients used in the process of making them.

c. Weights and Measures Act This provides protection to consumers by prescribing weights and measures for the use in business transaction. Its require testing and sampling of all weight and measures used by business concern and regular inspection to insure that all scales confirm to the established standard. This makes it a criminal offence if the weight or any other form of measurement is wrong.

d. Hire purchase Act This lays down a prescribed form for the scale of goods by hire purchase or credit sale. This act makes it necessary to detail the cash price, deposit, servicecharges, hire purchases or credit sale value, repayments terms and time period covered. In addition, right and duties of the buyer are set out in written agreement. Also the legal remedies are available as set out in the act.

e. Resale price Act The resale price and maintenance act prohibited manufacturers and other suppliers imposing conditions for the maintenance of minimum prices of resale. The act also prohibits the enforcement of such prices by the withholding of supplies from those dealers who fail to observe rules.

f. Trade description Act This requires goods sold to the public to bear correct descriptions and trademarks. It's also protect customers from misleading advertisement, under this Act, it is a criminal offence, punishable by fine or imprisonment to make a false or exaggerated claim to a goods or services.

g. Statutory merchandize marks Act This is designed to ensure that the sale of goods under trademarks is genuine and hence to protect consumers where false or forged trademarks or descriptions of goods of a misleading nature is used.

Consumers initiated methods

These are methods which are adopted by consumers to protect themselves through forming consumers associations.

Consumers Associations Is an association formed by consumers to safeguard themselves. The Tanzania Tenants Association is a good example of consumers association in Tanzania.

Consumers association normally deal in:

1. Protesting higher price charged by businessmen.
2. Informing the government on their inferior quality products sold to them by manufacturers.
3. Taking legal action against businessmen who abuse the consumers.

Consumers association can be explained as committees setup by consumers themselves to safeguard their interests. This may be setup with help of local councils. Any consumer is free to become a member of such an association payment of small fee. The association on carries out investigation into product regarding quality, prices, design and gives the results to members through published booklets. Consumers are then able to find out where the best bargains are.

Business initiated methods

These are methods which are adopted by businessmen to protect themselves through forming Business Associations.

Business Associations These are formed by businessmen and are concerned with bringing up sufficient and satisfactory standards of goods and services to customers. A system known as Resale (Retail) Price Maintenance (RPM) was introduced by association, which attempts to control the price at which their products are sold to consumers, such that wherever the goods are found, the price is the same or proximate to the required rate. In East African countries the system works well with beer, soda, cigarettes, petroleum products and transport rates.

Consumer can protect himself or herself before and when buying by doing the following:

1. A consumer can gather enough information about the price of product before doing the actual purchase. This can be by moving around several shops and reading various bulletins which provides such information.
2. A consumer should claim for necessary documents such as receipts, invoices warranty and so on when doing purchases. These documents will help him or her during the period of complication.
3. A consumer should obtain the necessary advice from other people about a product which has been advertised in order to protected them cheated by unfaithful leaders.
4. Also consumer can protect himself or herself via non government and non commercial consumer organization in the market.

Price control advisory committee

This is statutory committee set up by the government and representative of business, consumers and public authorities. It is charged with overseeing the price structure, review of prices, application from business concerns for price changes and recommendations to the Minister of finance.

Trade policies

These are policies created by the government to control trade. Examples of these policies include the following:

1. Export promotion Export promotion is done through
   1. Incentives given to investors in the export sector of the economy
   2. Export promotion organization (BET) Board of External Trade.
   3. Trade expansion through participation in existing international agreement e.g. Lome Convection
   4. Lowering of export tariffs
2. Protectionism Protectionism is a part of the trade policy aimed at controlling imports and promoting exports as a safeguard to the economy against the adverse effects of international trade. Forms of protectionism Protectionism can be in different forms as explained below:
   1. Import tariffs/duties. These are taxes on goods imported .Import tariffs lead to an increase in prices of imports in relation to local produced goods, the increase in price of imports influence local consumers to opt for locally produced goods and thus leads to fall in imports.
   2. import quota. An import quota is a maximum amount of certain commodities to be imported at certain period of time, quota also discourage import.
   3. Exchange control. In this measures the central bank provides limited amount of foreign currency to importers to limit them from importing larger quantities of imports.
   4. Embargo/Total ban. This is a policy of prohibiting import of certain commodities which have some negatives cultural or economic impact such as ponography, cocaine and second clothes.
3. Devaluation. The government deliberately reduces the value of its currency against other currencies. This lower the general price of locally produced goods and makes imported goods more expensive. In this way the consumers stops consuming imported goods and buy locally produced goods. This discourages traders from importing goods from other countries.
4. Revaluation. This is an action of the government of increasing the level of domestic currency. Revaluation aims at making imports cheap.
5. Trade Liberalization (Free trade). Free trade in international trade refer to trade policy where by a country eliminates all trade barriers such as tariff and import quota.
6. Business License. This is permitting document that allow a businessman to carry out a certain business. License are given by the government.

Fiscal measures

This are measures that influence economics activities by using taxes and expenditures. The government can control trade by either lowering or increasing tax.

Government investments

The government facilities commerce by investing in the following:

1. Public services. The government provides some services to the public. These are type of services which cannot be provided by the private sector so efficiently e.g. Defense and law enforcement.
2. Capital and securities market. The governments is involved in capital market by issuing stocks and extending loans. It participate in security market by buying security from the public and selling them back to the public.
3. Public corporations. The government establishes public corporations to engage in production of goods and provision of services. E.g. Tanzania Electrical Company (TANESCO) ,Air Tanzania Company Ltd National Insurance (NIC), Tanzania Broadcasting Corporation (TBC) etc.
4. Provision of credits and subsides. The government sometimes establishes special fund for providing credits to business. It also provide subsides to producers. A subsidy is the government assistance to local producers inform of funds or reduced price of inputs, subsidies enables producers to produce goods at lower cost and thus reduce the price of local goods encourage consumer to prefer domestic goods than imported goods which become relatively more expensive.

The role of T.I.C

1. To promote investment (both local and foreign) in the country this is done by way presenting our investment opportunities, providing brochures, investors guides, e.t.c.
2. To facilitate investors from the initial stage of their investment to the last. This is from identification of land company registration, business licensing, work permit, residence permit, tax issues, etc. as one stop facilitation Centre.
3. To give investors after care services by visiting them and see if they have any problem that T.I.C can help so that they can smoothly. continue with business and eventually expand.
4. To advice government on investment policy issues. T.I.C provides the government with feedback and recommendations on improving investment policies, laws, and procedures based on investor experiences and international best practices.