This thesis aim is to conduct the exploratory study through the analysis of conceptual framework which explains a phenomenon and provides long-term action recommendation. The phenomenon which is analysed within the thesis proposes that the customs duty loses its strength in creating balanced conditions for the presence of competing goods in one market that have been produced in two mutually inhomogeneous production environments. The analysed action in a form of alternative to the customs duty, that emerged from the theory, proposes that increased VAT by one unit on imported goods has a larger effect on the final (retail) price than a one-unit increase in customs duty has. The final analysed proposition aims to offer deeper validation for the emergent theory, proposing that importer in the cooperation with the exporter has a lower ability to eliminate the effect of regulation of international trade in the case of an increase in the rate of increased VAT than in the case of an increase in customs duty rate. The thesis applies the grounded theory principles and analysis of cyclical quantitative data related to the context of the studied phenomenon. This chapter presents the research background, research problem, objectives, and used methodology.