GMS 400 Lecture Notes - Lecture 5: Most Favoured Nation, Trade Bloc, World Trade Organization

• School: Ryerson University
• Department: Global Management Studies
• Course: GMS 400
• Professor: Dale Carl

Document Summary

Wto (cid:272)ou(cid:374)t(cid:396)y the sa(cid:373)e as fo(cid:396) the (cid:862)(cid:271)est (cid:272)ou(cid:374)t(cid:396)y(cid:863) (cid:396)ate (cid:894)(cid:862)(cid:373)ost fa(cid:448)ou(cid:396)ed (cid:374)atio(cid:374)(cid:863)(cid:895) i. e. give the same lowest tariff rate to all wto members: this comes out of the wto. They are trying to get a tariff off of everything. So in nafta, canada gives 0% import duties on almost all products to the. Usa and mexico, but we have higher import duties for other wto members. We can set any tariff rate we want for non-wto members. Excess manufacturing capacity; market access or markets share in another country; included the costs of research, etc. In the home country, therefore cheaper to sell in foreign markets (accounting standards) Extra info from lecture: you are damming on the market when you are selling it on the market for a lower price than everyone else. If charging less than what they charge in other country: 40% less than the home country. Trade barriers: get in the way of general trade.