MGMT 101 Lecture Notes - Lecture 6: Santa Barbara City College, World Trade Organization, Australian Dollar
Document Summary
The world of free trade: regional economic cooperation. With the increased ability to buy and sell around the world, to coordinate the operations of multinational companies that may be widely dispersed around the globe. Free trade the movement of goods and services among nations without ;political or economic obstruction. Trade protectionism the use of government regulations to limit the import of goods and services to protect their domestic industries against foreign competition. There are four devices to exert protectionism. Tariff trade barrier in the form of a custom"s duty, or tax, levied mainly on imports. Basic purpose is to raise the price of imported goods to make the prices of domestic products more competitive (protective tariff) Or they can be a source of government revenue (revenue tariff) Import quotas is a trade barrier in the form of a limit on the numbers of a product that can be imported.
