) – Organization established to lower trade barriers, such as high tariffs on imported goods and restrictions on the number and types of imported products that inhibited the free flow of goods across borders - International Monetary Fund ( IMF ) – primary purpose is to promote international monetary cooperation and facilitate the expansion and growth of international trade - World Trade Organization ( WTO ) – Replaced GATT in 1994; represents the only international organization that deals with the global rules of trade among countries - World Bank – A development bank that provides loans , policy advice, technical assistance and knowledge-sharing services to low and middle income countries in an attempt to reduce poverty in the developing world. Assessing Global Markets – PEST is considered together in order to obtain a complete picture of a country’s marketing potential. Analyzing the Political and Legal Environment – Governmental and non-governmental actions often result in laws or other regulations that either promote the growth of the global market (liberalization) or close off the country and inhibit growth (protectionism). Protectionist - Trade Agreements – Intergovernmental Agreements designed to manage and promote trade activities for specific regions. - Trade Sanctions – Penalties or restrictions imposed by one country over another for importing and exporting goods, services and investments - Tariffs - Tax levied on a good imported into a country also called a duty; intended to make imported goods more expensive and thus less attractive or competitive in domestic markets. - Dumping – The practice of selling a good in a foreign market at a price lower than its domestic price or below its cost. - Quota - Designates the maximum quantity of a product that may be brought into a country during a specific time period; reduce the availability of imported merchandise, reduce foreign competition - Boycott - A groups refusal to deal commercially with some organization to protest against its policies. - Exchange Control – refers to the regulation of a countries currency exchange rate, which is the measure of how much one currency is worth in relation to another. Countertrade – method of avoiding unfavourable exchange rates; it is Trade between two countries where goods are traded for other goods rather than hard currency. Liberalization - Trade Agreements – Intergovernmental agreement designed to manage and promote trade activities for a specific region Trading Bloc – Consists of those countries that have signed a particular trade agreement
European Union ( EU ) – economic and monetary union between 25 European countries. Dramatically lowered trade barriers between member nations within the union North American Free trade Agreement ( NAFTA ) – Limited to trade-related issues such as tariffs, quotas among the US, Canadda and Mexico Central American Free Trade Agreement Mercosur – Covers most of Southern America Association of Southeast Asian Nations (ASEAN) Political Risk Analysis:
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