BU1104 Lecture Notes - Lecture 12: North American Free Trade Agreement, Maastricht Treaty, Multinational Corporation
14 Jun 2018
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The buying and selling of goods and services by people from different countries
Impacts on our way of life
The impact of global business
Multinational corporation - a corporation that owns businesses in two or more countries
Direct Foreign investment
A method of investment in which a company builds a new business or buys an existing business in a
foreign country
Trade barriers
• Tariff
• Non tarrif barriers
o Quotas
o Voluntary export resources
o Government important standards
o Government subsidies
o Customs valuation / classifications
Trade agreements
• General agreement on tarrifs and trade
• Regional trading zones
o Maastricht treaty of Europe
o NAFTA
o CAFTA
o ASEAN and APEC
GAAT
• GATT made it easier and cheaper for consumers in all countries to buy foreign products
• Tariffs were cut 40% on average worldwide by 2005
• Stricter limits were put on government subsidies
• Established protections for intellectual property
• Trade disputes between countries now fully settled by arbitration panels from the WTO
Maastricht Treaty of Europe
• Formed in 1992 with 12 European countries
• Total membership is now 28 Countries
• Transformed these countries into the European Union, forming one economic market and
one common currency (the euro)
• Opened up and simplified trade among member nations
NAFTA
• North American free trade agreement between Canada, United States and Mexico
• Liberalises trade among these three nations
• Eliminates most tariffs and barriers
Consumers, trade barriers and trade agreements
• The strength of your currency determines how much you can buy. Some countries can buy
more with there money
• Example: the US Marketplace is easiest for foreign companies to enter. The competitive
market between domestic and foreign companies keeps prices low
find more resources at oneclass.com
find more resources at oneclass.com
Document Summary
The buying and selling of goods and services by people from different countries. Multinational corporation - a corporation that owns businesses in two or more countries. A method of investment in which a company builds a new business or buys an existing business in a foreign country. Gatt made it easier and cheaper for consumers in all countries to buy foreign products. Tariffs were cut 40% on average worldwide by 2005. Trade disputes between countries now fully settled by arbitration panels from the wto. Transformed these countries into the european union, forming one economic market and one common currency (the euro) Opened up and simplified trade among member nations. North american free trade agreement between canada, united states and mexico. The strength of your currency determines how much you can buy. Some countries can buy more with there money. Example: the us marketplace is easiest for foreign companies to enter.
