BUS 346 Chapter Notes - Chapter 6: Asteroid Family, Comparative Advantage, Leontief Paradox

• School: Simon Fraser University
• Department: Business Administration
• Course: BUS 346
• Professor: monica semeniuk

Document Summary

Mexico"s corruption and drug-related violence forced many us companies out of. Mexico = this caused on effect on mexico"s economy: protect jobs keeping unemployment rates low, preserve national security industries considered essential to national security often, government gets involved when free trade creates job losses at home. Its said that not always possible for small companies to gain funding in capital markets, thus they need financial support from the government . Methods of restricting trade: tariffs government tax levied on a product as it enters or leaves a country. Importing countries producers benefit as producers can increase price: export quotas hurt consumers in importing nation will have a lower selection and higher prices. If all nations followed this method, trade would severely be restricted nonessential: all nations following it should have colonies, ignore imports and rely on exports goods would likely cease.