Reasons for Supranationalist Organizations 1 MoneyEconomics trade more make

Reasons for supranationalist organizations 1

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Reasons for Supranationalist Organizations 1. Money/Economics – trade more, make more money 2. Safety/Defense – states get together to agree to protect each other 3. Cultural commonality – same types of people and beliefs, work together to promote or push culture more a. Arab League G-7, G-8, G-20, Nuke Club, BRIC (Brazil, Russia, India, China) Oddballs, not solid/legit supranationalist organizations No structure – don’t have to give up that small amount of sovereignty to get into them Still important Why Work Together: Economics Trade – FREE trade Buy more, trade more, make more money, etc. to make the economy strive More trade blocks than ever before, more states that joined those trade blocks than ever before o One of the reasons why the world economy has grown recently Eliminate as many barriers as possible to let people naturally do what they are going to do business-wise and make the best products they can with the cheapest prices, without government interference o Bananas are cheap in the US (49 cents/pound) – wouldn’t eat as much if they were 100 dollars/pound o When products are the cheapest for the consumer so the country selling them can sell more and EVERYONE makes more money Q: What mostly gets in the way of free trade? A: Governments Protectionism – when a government wants to protect the industries and businesses of their state at the expense of the industries and businesses of other states Two ways a government can protect its own industries – opposite of free trade o Put tariffs on imported goods – taxes on goods coming in Sometimes countries are at war with each other Most of the time to protect their own countries industries
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French wine vs. American wine – if the American wine industry isn’t doing as well, America might put a tax on French wine so it becomes more expensive to the American people o Subsidies Helping out the local businesses to thrive and succeed in their country at the expense of other businesses in other countries Corn in Ghana costs $1, but the US corn costs $3 o US gives US producers money every year ($2.50/bushel) so the corn in the US sells for $0.50, so it is cheaper than the Ghana corn Free trade pacts between countries for years – lower tariffs and get rid of regulations and subsidies between the two countries o Trade block, same as above, but with more countries o
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  • Fall '08
  • International Trade, North American Free Trade Agreement, World Trade Organization

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