BUS 343 Lecture Notes - Lecture 12: North American Free Trade Agreement, Foreign Exchange Controls, Trade Barrier
17 Jan 2018
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Global firm: operate > 1 country, advantages in costs, reputation. Minimize national boundaries raises capital, obtains material, manufactures, markets goods wherever best job. Restriction: tariffs, duties, taxes => raise revenue, protect domestic firms, favourable trade behaviours. Quota: limits foreign imput imports => conserve on foreign exchange, protect local industry and employment. Exchange controls: limit foreign exchange amount + rate against other currencies. Nontariff trade barrier: biases against its bids, restrictive product standards, excessive host- country regulations. Wto: reassess barriers, new rules, imposes sanctions, mediates disputes, reduce tariff, toughened protection of copyrights, patents, trademarks, intellectual property (uruguay round) Regional free trade zones/ economic community: nations common goals regulation international trade. Eu: reducing barriers free flow of products, services, finances, labour + trade policies with nonmember. Adapt eu currencies => weak currency country more attractive => euro crisis. North american free trade agreement): free trade zone among canada, us, mexico.
