MGMT1101 Lecture Notes - Lecture 9: Tariff, International Trade, Execution Unit
Document Summary
Why government intervene in trade: political, protect jobs and industries, national security, retaliation, protecting consumers, furthering foreign policy objectives, protecting human rights, economic, protect infant industries, strategic trade policy, drawbacks, free trade arguments. Government tool of trade control: tariffs, nontariff barriers (ntbs), including, subsidies (grants/loans) Import quotas: voluntary export restraints (ver, local content requirement, technical standards/regulations. Regional trade agreement (rta: agreements among countries in a geographic region to reduce trade barriers among themselves, rtas involve greater integration of member economies, examples of regional economic groups: eu, nafta, asean, apec, cer. Regional trading blocs: rationales, economic: promote free trade (allow speicialtion and efficiency) and stimulate competition and innovation, polticial: encourage political cooperation, enhance political weight. Impediments: unequal distribution of benefits within a country, lowered national sovereignty, regional trading bloc competing with each other, trade diversion: lower-cost non-member suppliers are replaced by higher-cost member supplies, costly to set up. Trade policies and international business: opportunities of regional integration.
