BUS 1 Lecture Notes - Lecture 9: Barter, North American Free Trade Agreement, Mercosur
Document Summary
World trade organization: established by the uruguay round of trade negotiations dramatically lowered trade barriers worldwide. For the first time trade agreement covers services, intellectual property rights, and exchange controls: makes loans to developing nations to help build infrastructures. International monetary fund makes loans to member nations that cannot meet their budgetary expenses. International economic communities reduce trade barriers among themselves while establishing common tariffs and other trade barriers toward nonmember countries. Best-known economic communities are the european union, nafta, cafta, and. Ways to enter global market: exporting, licensing, contract manufacturing, joint ventures, direct investment. Domestic firms entering international arena need to consider politics, economies, and culture of the countries where they plan to do business. (ex) government trade policies can be loose or restrictive, countries can be nationalistic, and governments can change. Sidestep restrictive trade and licensing restrictions: frequently have headquarters in more than one country.
