BUS-D 270 Lecture Notes - Lecture 14: Columbia Sportswear, Trade Restriction, Customs War
Document Summary
Video: level of interconnectedness across countries all over the world. Trade restriction: tariffs - tax to make the product more expensive to entice consumers to buy locally. Quotas, restriction on quantity - different kinds of tariffs. The government can try to restrict trade from country b, b can restrict trade from a. Tax breaks, lower tariffs, preferential treatment, low-interest loans, bailouts. All impacts the competitiveness of foreign firms. Governments can restrict and enhance in a number of ways. If ch. 1 demonstrates how global business is today. Government intervention can be impactful with reduced costs and selection. 3 & 4 strongly recommend political and economic freedom. People prefer economic freedom over political freedom, strategy, costs, sourcing & selling. When countries trade, they benefit their consumers and country more. Video: economic argument for comparative advantage: pizza and cake makers each ended up better off.
