BMGT 350 Chapter Notes - Chapter 15: International Trade, General Agreement On Tariffs And Trade, Trade Secret
22 Apr 2016
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Document Summary
World is shrinking rapidly with advent of faster digital communication, transportation, financial flows. International trade has boomed over the past three decades. Global firm: firm that operates in more than one country, gains research and design, production, marketing, and financial advantages in its cost and reputation that are not available to purely domestic competitors. Tariffs and duties are often used to force favorable trade behaviors from other nations. Countries can set quotas, limits on amount of foreign imports that they will accept in certain product categories- purpose is to conserve on foreign exchange and protect local industry and employment. Exchange controls- limit amount of foreign exchange and the exchange rate against other currencies. Nontariff trade barriers- biases against its bids, restrictive product standards, excessive host-country regulations or enforcement. General agreement on tariffs and trade-designed to promote world trade by reducing tariffs and other inetneraeiontal trade barriers. Established world trade organization which replaced gatt in 1995, oversees original gatt provisions.
