GEB 3373 Lecture Notes - Lecture 42: Political Risk Insurance, Predatory Pricing, Unfair Competition

• School: University of Florida
• Department: Business Administration - General
• Course: GEB 3373
• Professor: Phalin Amanda

Document Summary

Ca(cid:374) sti(cid:373)ulate e(cid:454)ports (cid:271)(cid:455) de(cid:272)reasi(cid:374)g fir(cid:373)s" (cid:272)ost. National, state, local governments provide economic development incentives to entice firms to create jobs locally. > without subsidies, firms not competitive on global market. Large/poorly targeted subsidies can distort international trade. Geographic area where imported/exported goods receive preferential tariff treatment. > may be as small as warehouse, as large as city. Ftzs may allow firms to decrease, delay, or eliminate customs duties. Success/failure for exporting big-ticket items (aircraft, drilling rigs) depends on. Most nations have govt. -owned agencies to assist domestic firms in financing export sales. Export-import bank of u. s. (exim bank) provides financing for u. s. exports via direct loans/loan guarantees. > determines if unfair trade practice has occurred. > if (cid:373)ajorit(cid:455) of (cid:373)e(cid:373)(cid:271)ers deter(cid:373)i(cid:374)e fir(cid:373)/i(cid:374)dustr(cid:455) has suffered (cid:862)(cid:373)aterial i(cid:374)jur(cid:455)(cid:863), i(cid:373)pose duties o(cid:374) offe(cid:374)di(cid:374)g i(cid:373)ports. Ad valorem tariff imposed on imported good to counteract foreign subsidies. > calculated to just offset advantage exporters gets from subsidy.