ADMS 3960 Lecture Notes - Lecture 6: Sultanate Of Ifat, North American Free Trade Agreement

• School: York University
• Department: Administrative Studies
• Course: ADMS 3960
• Professor: Leigh Lampert

Document Summary

No country permits completely unregulated flow of goods and services. Governments generally want to assist domestic firms to compete globally. Protectionism refers to government restrictions and incentives to help domestic firms compete with foreign firms at home and abroad. Governments may intervene in trade for economic/social/political objectives. But they generally do so with political self-survival in mind. Discussions about changes to trade policy often sparks debate among those that will be affe(cid:272)ted (cid:894)(cid:862)stakeholde(cid:396)s(cid:863)(cid:895). Stakeholders (including consumers) often have conflicting interests and governments get caught i(cid:374) the (cid:373)iddle, t(cid:396)(cid:455)i(cid:374)g to satisf(cid:455) (cid:862)e(cid:448)e(cid:396)(cid:455)o(cid:374)e(cid:863). E(cid:454)a(cid:373)ple: nafta (cid:894)(cid:272)o(cid:374)su(cid:373)e(cid:396)s a(cid:374)d e(cid:373)plo(cid:455)e(cid:396)s vs. labour movement) why governments intervene in trade: Promoting acceptable practices abroad (i. e. dealing with unfriendly countries) Preserving national identity instruments of trade control: Trade controls that directly affect price and indirectly affect quantity include: i(cid:373)po(cid:396)t/e(cid:454)po(cid:396)t ta(cid:396)iffs (cid:894)aka (cid:862)duties(cid:863)(cid:895) Subsidies: direct or indirect government financial assistance. Aid and loans, including loans to a country with condition that spend the funds in the donor country.