17 Questions
What is the purpose of GATT (General Agreement on Tariffs and Trade)?
To promote trade among nations
What is the primary objective of a free trade area?
To abolish tariffs and other barriers among member countries
What is the main characteristic of a customs union?
Elimination of internal barriers to trade
What is the key feature of an economic union?
Free movement of factors of production
What is the main objective of the European Union?
To harmonize national laws and regulations
What is the main aim of the Gulf Cooperation Council (GCC)?
To promote regional economic integration
What are some potential export problems that companies may face?
Legal procedures
Which governmental action is aimed at discouraging imports and blocking market access?
Tariffs
What did Japan's trade ministry develop after WWII?
Export strategies
What did the China triangle (People’s Republic, Taiwan, & Hong Kong) and the four tigers learn from Japan?
Export strategies
What are examples of nontariff barriers mentioned in the text?
Quotas
What do most nations encourage and restrict?
Exports and imports
What are some factors involved in arranging transportation for exports?
Transport rate determination
What did the China triangle (People’s Republic, Taiwan, & Hong Kong) and the four tigers learn from Japan?
Export strategies
What are examples of nontariff barriers mentioned in the text?
Quotas
What do most nations encourage and restrict?
Exports and imports
What are some factors involved in arranging transportation for exports?
Transport rate determination
Study Notes
- 5% antidumping tariff on shoes imported from China
- Nontariff barriers against Chinese textiles include quotas
- Tariffs on foreign auto parts reach as high as 28%
- Expensive, time-consuming procedures for obtaining pharmaceutical import licenses are non-tariff barriers
- Preferential tariffs are lower tariff rates for imports from certain countries
- GATT (General Agreement on Tariffs and Trade) is a treaty among nations to promote trade, established in 1947
- Over 300 preferential trade agreements (PTAs) exist, giving partners special treatment and potentially discriminating against others
- Free trade area: countries agree to abolish tariffs and other barriers amongst themselves, but continue independent trade policies with non-members
- Customs union: includes the elimination of internal barriers to trade and the establishment of common external barriers to trade
- Economic union: includes the elimination of internal barriers to trade, common external barriers, and the free movement of factors of production
- European Union aims to harmonize national laws and regulations for the free flow of goods, services, people, and money across national boundaries
- Middle East region, primarily Arab with varying degrees of economic freedom, contains 95% Muslim, 5% Christian and Jewish population, and 25% of the world's oil
- The Gulf Cooperation Council was established by six countries with 45% of the world's oil to diversify industries and reduce reliance on oil
- Political environment: trade barriers, tariff and non-tariff, favor local firms and discriminate against foreign ones; economic environment: regional economic integration aims to use resources more effectively and provide larger markets for member-country producers.
Test your knowledge on the challenges of exporting, including transportation, packaging, and legal procedures, as well as the national policies governing exports and imports. Explore the impact of government programs and learn about Japan's trade after WWII.
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