BU111 Lecture Notes - Asia-Pacific, Exchange Rate, Protectionism
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BU111 Full Course Notes
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Document Summary
Trade agreements or conditions: political system, political stability, government can create incentives, constraints, or support/bail out when needed, affects uncertainty, risk, and constraints/costs faced by firm. Customers get variety of choices, keeps prices reasonable. Protects consumers i. e. hazardous products act. If dangerous or harmful substances, need to be clearly labeled. Textile labeling act, food and drug act. Achieve social goals i. e. universal health care, education. Whether government changes or not, we have foundational goals always present. Protect the environment canada water act, fisheries act. Much legislation present to reduce harm on and protect the environment. Taxation agent: collected by all three levels of government, government earn revenue largely through tax systems, revenue - progressive, regressive, restrictive. Absolutely nothing to do with the amount of income, flat rate for all products and price range. Called regressive because it takes a higher percentage of income from lower income earners. Put in place to discourage us from using certain products.
