Kalan Lecture 10-suma

Kalan Lecture 10-suma - 2/23/11 World Trade: the flow of...

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World Trade : the flow of goods and services among different countries What country is the largest trading country? United States : ours is 4 times as large as china’s market place. Global firms view the entire world as potential market industry -do not think about geo political boundaries -Think of where firm should be in business -local governments create laws to protect and encourage international business Governments want to encourage international trade When this happens, everyone’s economies are better and go up North American Free Trade Association (early 1900’s): trade barriers came down between Canada, mexico and US. More jobs were created. Ability to eliminate trade barriers stimulates growth for everyone Doesn’t take away from government wanting to protect their own companies Protectionism : a government policy to give domestic companies an advantage. Companies have a job: encourage a stimulating economy for their own countries US have decisions to make: trade barrier or no trade barrier: How to regulate things? a. Impose import quotas : limitations on amount of product that can enter a country i. Ex. Types of fabrics imported 1. Protected soft goods industry (only so much cotton, so much silk) b. Impose tariff: a tax on imported goods a. What does leveraging do to that product? i.
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This note was uploaded on 09/16/2011 for the course MARKETING 301 taught by Professor Yeniyurt during the Spring '08 term at Rutgers.

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Kalan Lecture 10-suma - 2/23/11 World Trade: the flow of...

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