33:010:275 Lecture Notes - Lecture 11: World Trade Organization, General Agreement On Tariffs And Trade, Financial Market

• School: Rutgers University
• Department: Accounting
• Course: 33:010:275
• Professor: S Sahay

Document Summary

Regional trade agreements (rto) and wto: world trade organization (wto) successor to the general agreement on tariffs/trade (gatt). Functions include: administering agreements, forum for trade negotiations, trade disputes, monitor trade policies, aid for developing countries. Infrastructure: macroeconomic stability, health & primary education, higher education & training, goods market efficiency, labor market efficiency, financial market sophistication, technological readiness, market size, business sophistication. Access & proximity to markets: relocation to china not just for cheap labor but for access to the market. In the service industry, proximity to customers is even more critical: convenience is a factor in consumer choice. Labor issues: labor availability, productivity, & skill, unemployment & underemployment rates, wage rates; turnover rates; labor force competitors, right-to-work laws. Access to suppliers & cost: supplier proximity influences the delivery of materials & effectiveness of the supply chain. Utility availability & cost: supply of electricity has not kept pace with the high speed of development, telecommunication costs have dropped dramatically.