4820ch3 - Ch - 3 Trade and Investment Policies....

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02/12/11 Ch - 3 Trade and Investment Policies. Trade Barriers Tariffs Quotas Voluntary Export Restraint Monetary Barriers Standards Local Content Requirements Investment restrictions.                   (longer list on pg.82) Bureaucratic Hurdles 3
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02/12/11 Trade Barriers. Tariffs  – taxes based on the value of imported goods and services. Usually       by product categories, sometimes countries. Revenue  generating,  discourage imports of undesirable products, ‘level the  playing field’. Quotas  – Restrictions on the number or monetary value of products that can  be imported, (sometimes market share). Usually product and country  specific.   Voluntary Export Restraint  – Country specific. Usually under pressure and  severe threats. Designed to help domestic industries reorganize and  restructure. Not subject to any previous trade accords. Monetary Barriers  – exchange control, nonconvertible currency, differential  exchange rates. Usually balance of payment problems (developing  countries).
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Trade Barriers. Standards  – Product specific. Health, Safety, Quality, Performance. Designed  to protect consumers but are often disguised barriers. Local Content Requirements  – Designed to aid domestic economy by either  increasing sales of local manufacturers or encouraging foreign  direct  investment.  Investment Restrictions  – Restrictions on the percentage of ownership of  local firms by foreign manufacturers. Designed to keep decision  making and ownership in local hands. Bureaucratic Hurdles
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4820ch3 - Ch - 3 Trade and Investment Policies....

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