3 - Chapter two 1. Balance of payments a. Exhibit 2.1 b....

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Chapter two 1. Balance of payments a. Exhibit 2.1 b. Current account ex. 2.3 2. Protectionism (trade restrictions 35-41) a. Logic – keeps job at home and keeps wealth at home. i. 1-8 p.35-41 b. illogic – consumer choices decrease, there is less competition, prices may rise and quality may lower. Standard of living may go down. i. hidden taxes on consumers – is the decrease in the standard of living. c. implementing protectionism- 2 ways a tariff or a non tariff i. trade barriers 37-41 1. tariffs: tax on imports a. raises the selling price, reduces demand 2. non tariff barriers ex, 2.6 p.37 qoutas and standards are most common. a. quotas – not gonna tariff your product but limit how many units you may bring into the united states. b. ver c. boycott/embargos d. monetary barriers e. standards – gov says we require the product have certain attributes. Bringing a car into the u.s. has to meet our emission and safety standards f. antidumping penalties 3. easing trade restrictions (protectionism) 41-45
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This note was uploaded on 09/22/2010 for the course MKTG 3450 taught by Professor Steveengel during the Fall '10 term at Colorado.

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3 - Chapter two 1. Balance of payments a. Exhibit 2.1 b....

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