Political Science 2211E Lecture Notes - Lecture 4: Multilateralism, North American Free Trade Agreement, National Treatment
11 Mar 2016
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Document Summary
Trade the exchange of one commodity for another. Internaional trade trade which crosses internaional borders. Protecionism the pracice of restricing imports of goods and services n. Tarifs taxes imposed on the import of paricular products. Non-tarif barriers: quotas, subsidies, currency controls i. e. canadian exports going up because dollar is low, exports more atracive, cheaper for us companies to purchase in usd. Can make it diicult for people to purchase foreign currencies: administraive and regulatory barriers. Prevening import of goods with certain harmful chemicals, etc: voluntary export restraints. Imporing country may be threatening to enact some sort of barrier country reduces its exports towards other countries rather than have import restricions against their goods. Smith absolute advantage: gains from trade arise from compeiion of goods, produce more of what they can do most eiciently and trade for other goods which other naions produce more eiciently.
