Sheet1 - "Rounds of talks": gradually reduce trade barriers...

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“Rounds of talks” : gradually reduce trade barriers 4 issues for int’l business : Contract law, property rights, Protection of intellectual property, Product safety and liability Absolute advantage (Adam Smith) : Specialize in producing goods in areas where it has an absolute advantage Ad valorem tariff : A proportion of the value of the imported good (inefficient) Administrative policy : Informal instrument restrict Agricultural protectionism : high tariff + high subsides raise price, reduces trade vol., encourage overproduction of subsidized products Amartya Sen -theory of social development dev. Should measured less by material output measured such as GNP, per capita + more by capabilities+ opportunities people . Antidumping policy : antidumping duties=countervailing duties specific tariff, can be valid up to 5 yrs Balance-of-payment accounts : a) Current a/c (merchandise trade, export or import of services, investment income), b) capital a/c (purchase or sale of assets) Benefits of doing business : a function of the size of the market (population), its present wealth (purchasing power), and its future growth prospects. first-mover advantages Business ethics : accepted principles of right or wrong that govern the conduct of business people Civil law : Based on detailed set of laws organized into codes less flexibility Collectivism : Needs of society > Needs of the individual (Communism, Socialism [modern world], Totalitarian) Command economy : Prices are set by central planners, productive assets are owned by the state, and private ownership is forbidden. Common Agricultural Poilcy : by EU. Protect the jobs of Europe’s politically powerful farmers by restricting imports and guaranteeing prices. Common law : Based on tradition (a country’s legal history), precedent (past cases), custom (ways in which laws are applied in specific situations) greater flexibility Communism : Socialism can only be achieved thru violent revolution and totalitarian dictatorship Communist totalitarianism Comparative advantage (David Ricardo) : Productivity differences, produce the good that it can produce most efficiently, unrestricted free trade increase world production positive-sum game Contract law : governs contract enforcement. Common detailed with all contingencies spelled out. Civil Criminal laws/ civil liability laws : Least extensive in lesser developed countries & Raise important ethical issues for firms doing business abroad Cross-cultural literacy : an understanding how cultural differences across and within nation affect business operation. Cultural relativism : One should adopt the ethics of the culture in which one is doing business. Culture
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This test prep was uploaded on 04/22/2008 for the course IBUS 211 taught by Professor Ullmann during the Spring '07 term at Binghamton.

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Sheet1 - "Rounds of talks": gradually reduce trade barriers...

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