international business n.
Download
Skip this Video
Loading SlideShow in 5 Seconds..
International Business PowerPoint Presentation
Download Presentation
International Business

Loading in 2 Seconds...

play fullscreen
1 / 8

International Business - PowerPoint PPT Presentation


  • 195 Views
  • Uploaded on

International Business . Chapter Seven Governmental Influence on Trade. Conflicting Results of Trade Policies. Why governments intervene? - Governments intervene trade for the good of the citizens (or, does it really?) - Arguments for and against trade policies

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'International Business' - christopher


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
international business

International Business

Chapter Seven

Governmental Influence on Trade

conflicting results of trade policies
Conflicting Results of Trade Policies

Why governments intervene?

- Governments intervene trade for the good of the citizens (or, does it really?)

- Arguments for and against trade policies

Protectionism refers to those government restrictions and incentives specifically designed to help a county’s domestic firms compete with foreign competitors at home and abroad. Protectionist measures are likely to lead to retaliation by affected stakeholders.

instruments of trade control
Instruments of Trade Control
  • Tariffs (also called duties) are taxes levied on (internationally) traded products.
    • Exports tariffs,transit tariffs, import tariffs, levied by the country of destination on imported products
    • A specific duty is a tariff that is assessed on a per unit basis. An ad valorem tariffis assessed as a percentage of the value of an item.
  • Nontariff barriers (NTBs) represent administrative regulations, policies, and procedures, i.e., quantitative and qualitative barriers, that directly or indirectly impede international trade.
  • Trade barriers have often been the sources of conflict among nations and in WTO negotiations
instruments of trade control nontariff barriers ntb
Instruments of Trade Control: Nontariff barriers (NTB)
  • Nontariff barriers (NTB): Direct Price Influences
    • Subsidies
    • Aids and Loans
    • Customs valuation
  • Nontariff barriers (NTB): Quantity Controls
    • Quotas: VER, Embargoes
    • “Buy Local” legislation
what measures firms can take to deal with governmental intervention
What measures firms can take to deal with governmental intervention
  • Move operations to lower-cost countries
  • Concentrate on market niches that attract less international competition
  • Opt for internal innovations leading to greater efficiency and/or superior products
  • Try to secure government protection
chapter 7 discussion questions
Chapter 7: Discussion Questions
  • Explain the rationale for and against governmental intervention in trade.

OR

  • What is protectionism? What are the arguments for and against protectionism?
  • How governments intervene trade with the help of non-tariff barriers? Explain.
  • What are the effects of subsidies (or quotas) on price, production, market, motivation and trade? Explain.
  • What measures firms can take to deal with governmental intervention? Explain.