9 - Chapter 8 - Government Intervention in International...

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Chapter 8 -- Government Intervention in International Business Now that we know that firms will venture into other environments with direct investment to directly manage parts of their VACs in other countries, let's explore some of the market imperfections that these firms are trying to circumvent. What are the things that governments can do to make their will known, to make the will of the people and constituents they represent known? In this chapter we will explore tariffs . .. which act like taxes . .. and a couple of different kinds of them. We will examine the reasons why local host governments might wish to put this kind of block or impediment in the way of firms which initially export products into their countries. They may be tariffs on a specific quantity such as a bushel of wheat or a barrel of oil, or they may be tariffs on the value of the export . .. or import if viewed from the standpoint of the receiving country. Either way, they both make it more difficult for local host consumers to buy foreign products
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9 - Chapter 8 - Government Intervention in International...

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