28 - Dumping is the act of selling a product abroad at a...

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

View Full Document Right Arrow Icon
Political and Legal Differences Political Climate o Stability is a key consideration Legal Environment o U.S. Law Exchange Rate Mexican Peso o 13.235 = $1 Euro o 0.742942 = $1 Government Corruption Transparency International produces an annual corruption index for businesspeople and the general public (Russia and Iran) Types of Trade Restriction Tariffs – taxes, surcharges, or duties on foreign products o Tariffs generate income for the government o Protective tariffs raise prices of imported goods to level the playing field for domestic competitors Nontariff Barriers o Quotas limit the amount of a product that can be imported over a specified time period
Background image of page 1

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

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

Unformatted text preview: Dumping is the act of selling a product abroad at a very low price o More serious an embargo imposes a total ban on importing a specified product. o Exchange controls through central banks or government agencies regulate the buying and selling of currency to shape foreign exchange in accordance with national policy Reducing Barriers to International Trade Organization Promoting International Trade o GATT (General Agreement on Tariffs and Trade o WTO (The World Trade Organization) succeeded GATT o Representatives from 151 countries o Reduce tariffs and promote trade o World Bank o IMF (International Monetary Fund)...
View Full Document

This note was uploaded on 09/27/2011 for the course ECON 101 taught by Professor Gottlieb during the Spring '08 term at Rutgers.

Page1 / 2

28 - Dumping is the act of selling a product abroad at a...

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