Global trade create competition which decreases

global trade create competition which decreases prices
● contributes to why america spends least on food
● global trade-economies
○ 2 major types when considering agriculture production
■ export dependent (major producer)
■ import dependent
● contrasting economies
○ us relies more on export
■ (+) produce enough to export
● not relying on other countries for good
○ self-reliant
■ (-/+) depend on global economies as stable income
● failure in these economies affects us economy
● govt less involved in price adjustments that affect consumers
○ japan relies on imports
■ depends almost totally on imports for goods (
● trade vocab
○ tariff: tax (issued by receiving country) on imported goods; increases price for
customer, decreases sales of product
○ barrier: set by receiving country; standards for safety, quality, etc; can protect
domestic industries and public health
○ embargo: suspension of trade with one or more foreign countries; may be
commodity specific
● tariffs
○ govt imposed tax on imports
■ protect comparable domestic goods by increasing cost of imported good
● consumers would buy imported good if it was cheaper
○ need tariffs
■ when foreign good is cheaper to produce than domestic
■ wto(world trade organization)-helps negotiate tariff agreements between
countries
■ usually higher tariffs on processed goods; low on raw goods
● global trade-price competition
○ why does us import same products it exports
■ higher profit margin
● factors that impact trade
○ growth and stability of world markets
■ changes in world population
■ economic growth

■ income
○ supplies
○ prices
○ exchange rates
○ govt support
○ trade protection policies
● impact of seasons on trade
○ hemispheres make a difference
■ now do not have to wait for seasonal produce (+)
■ other countries can be first in market (+/-)
● competition with us products in us stores (-)
● consumer impact on trade
○ you vote daily w $$$
■ growers will only produce what will be purchased
● imports as well
■ quinoa current issue
● factors affecting food price
○ supply
■ production preferences
● ethanol vs good grain
● efficiency and surplus
■ weather
■ oil and fuel
■ govt involvement
○ demand
■ income
■ consumer preferences
■ govt involvement
● impact of food prices
○ benefits of high prices
○ the poorest people
○ however high prices represent
● trade agreements
○ contracts btwn trading countries on conducting business
○ goal: keep trade flowing
■ eliminating trade barriers (or keeping them)
■ upholding social and environmental objectives
● protecting consumers and environment
● wto 21 years
○ purpose
○ forum for govt to
● wto how it works
○ facilitates agreements between countries by
■ having the member countries make trade agreements as clear as
possible
■ allowing wto to renegotiate agreements
■ settling conflicts btwn countries
■