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Unformatted text preview: Week 3: Introduction to Trade Policy Introduction: To be successful in international business, managers must thoroughly understand a variety of financial methods foreign countries might use to assure competitive advantage in a trade agreement. This week you will be introduced to some of the most common financial strategies governments use that affect international trade, including quotas, tariffs, subsidies, and taxes. You will also learn how to differentiate between various financial tools and their effects on a country's financial well-being. As you listen to financial news, you might hear mention of a trade embargo against a country. Consider what you know or have heard about trade restrictions on imports. Reflect on the restriction the United States instituted in the 1980s when they limited the number of car imports from Japan. If a trade restriction were in place today in your country, how might it impact your ability to do business? Learning Outcomes By the end of this week, you will be able to: • Appraise the value of the Heckscher-Ohlin theorem's various empirical tests as a predictor of trade patterns among countries. • Differentiate between the various financial instruments countries use to establish a comparative advantage when trading with other countries, and examine the effects that using these instruments has on a country's economy. • Evaluate how trade restrictions affect the net national welfare of a count Please read and view this week's Learning Resources before you complete the Discussion....
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This note was uploaded on 04/10/2011 for the course ECON 2001-1 taught by Professor Nickeyturner during the Spring '11 term at Walden University.
- Spring '11
- International Economics