IBUS2301 Study Guide - Final Guide: Andean Community, Transfer Pricing, Offshoring
Document Summary
Lecture 3: the political economy of trade and. Lo 3. 1 identify and describe the policy instruments used by governments to influence international trade and foreign direct investment. Lo 3. 2 identify and evaluate the arguments for government intervention in international trade and foreign direct investment. Lo 3. 3 describe current international trade and foreign direct investment issues, and discuss how the world trade organization is addressing these issues. Lo 3. 4 identify and compare the different levels of regional economic integration. Lo 3. 5 examine the implications for international business strategies of international trade barriers and the increasing number of bilateral and regional trade agreements. Government does no attempt to restrict what its citizens can buy from another country or what they can sell to another country. Many countries commit to free trade but tend to intervene in international trade to protect interests of politically important groups. Tariffs - tax levied on imports that raises cost of imported products relative to domestic products.
