BA10-Mod5Lect4 Notes

BA10-Mod5Lect4 Notes - Module 5 Lecture 4 4/25 Global...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Module 5 Lecture 4 4/25 Global Business & Entrepreneurship Questions In theory, when a country’s currency weakens, imports should drop. But, this may not happen if… B. Consumer demand for imports is price inelastic What is true about “world products” acc ording to lecture? C. Promise of world products has not been fulfilled in the auto industry Definition of Terms: Tariff Tariff tax imposed by importing nation when goods pass in Tariff in US not bad, only 15% Protectionist tariff o Country wants to protect goods made at home o Ex. Car to Costa Rica Non-Tariff Restrictions on Trade Subsidies o China bank loans as de facto subsidy o Airbus, government involved gave it loans of $1 billion each Quotas o Ex. on textile goods o Only import certain number of certain classes of goods Voluntary quota Embargo o Japan and US beef: want to sell Kobe beef at $10, not $5 Structural Barriers o Ex. Japan kiretsu firms join together, only buy within the group Structural Barriers India moving towards free trade o Some T-shirts come from India, some from Vietnam o Wal-Mart cannot open store there US does not allow for foreign ownership of airlines
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 04/02/2008 for the course UGBA 10 taught by Professor Xuanmingsu during the Spring '08 term at Berkeley.

Page1 / 3

BA10-Mod5Lect4 Notes - Module 5 Lecture 4 4/25 Global...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online