International Trade Overview

<p>At least 75% of car parts must be made in the US, Canada, or Mexico to qualify for tariff-free access. (A)</p> Signup and view all the answers

<p>It provides protections for Mexican workers, including the right to unionize. (D)</p> Signup and view all the answers

<p>High saving rates mirrored by deficits in the US (C)</p> Signup and view all the answers

<p>To keep interest rates low and stimulate the economy (C)</p> Signup and view all the answers

<p>Free movement of labor and services among members (C)</p> Signup and view all the answers

<p>It resulted in total economic shutdowns (C)</p> Signup and view all the answers

<p>Shift of jobs to low wage countries within the bloc (C)</p> Signup and view all the answers

<p>No tariffs for internal trade and fixed tariffs for external trade (D)</p> Signup and view all the answers

<p>National currency independence (D)</p> Signup and view all the answers

<p>Shifting imports from non-beneficiary countries to member countries (C)</p> Signup and view all the answers

<p>To levy a tax on imported goods (A)</p> Signup and view all the answers

<p>A country restricts the amount of certain products it sells to another country (B)</p> Signup and view all the answers

<p>The tendency of rising powers to challenge established powers, often leading to conflict (D)</p> Signup and view all the answers

<p>It is based on the percentage of the product's market value (C)</p> Signup and view all the answers

<p>They favor domestic producers by limiting foreign competition (D)</p> Signup and view all the answers

<p>It places a fixed limit on the volume of imports (A)</p> Signup and view all the answers

<p>To ensure semiconductor facilities are not built in foreign nations of concern (D)</p> Signup and view all the answers

<p>Implementing measures to protect domestic industries from foreign competition (D)</p> Signup and view all the answers

<p>Imposing tariffs on imported steel (D)</p> Signup and view all the answers

<p>Limit the amount of foreign currency available for importers (D)</p> Signup and view all the answers

<p>World Bank (B)</p> Signup and view all the answers

<p>They influence market entry selection and strategy. (C)</p> Signup and view all the answers

<p>By creating too much money chasing too few goods. (D)</p> Signup and view all the answers

<p>Holiday Traditions (B)</p> Signup and view all the answers

<p>Potential for significant market growth. (A)</p> Signup and view all the answers

<p>It ensures stability in the global monetary system. (C)</p> Signup and view all the answers

<p>Poor consumers have high purchasing power. (B)</p> Signup and view all the answers

<p>Exchange Rates (B)</p> Signup and view all the answers

<p>A banking crisis leading to widespread economic difficulties. (A)</p> Signup and view all the answers

<p>Massive layoffs in multiple developed and developing countries. (B)</p> Signup and view all the answers

<p>Market Size (D)</p> Signup and view all the answers

<p>Declining export growth (D)</p> Signup and view all the answers

<p>Iceland (A)</p> Signup and view all the answers

<p>Increased amount of local currency needed for imports. (A)</p> Signup and view all the answers

<p>To protect developing industries from foreign competition (C)</p> Signup and view all the answers

<p>The Employment Argument (B)</p> Signup and view all the answers

<p>It creates barriers for foreign firms entering the market. (C)</p> Signup and view all the answers

<p>Discouragement of imports to protect local industries (C)</p> Signup and view all the answers

<p>Heckscher-Ohlin Theory (D)</p> Signup and view all the answers

<p>To oversee trade agreements and resolve disputes among member countries (A)</p> Signup and view all the answers

<p>Stage Three (C)</p> Signup and view all the answers

<p>Limiting foreign investment when national interests are at stake (C)</p> Signup and view all the answers

<p>Countries should focus on what they can produce most effectively. (D)</p> Signup and view all the answers

<p>They often limit foreign ownership in critical sectors. (C)</p> Signup and view all the answers

International trade allows countries to specialize in producing goods they excel at, boosting efficiency, productivity, and economic growth. Consumers benefit from more choices, and governments gain revenue.

Goods produced in one country and sold to another country.

Goods produced in one country and bought by another country.

When a country imports more goods than it exports.

Replaced NAFTA. Provides access for US to some Canadian dairy, sets rules for car parts made in the agreement's countries for tariff-free sales (minimum 75% of parts from member countries), and includes factors intended to improve Mexican worker rights and protections (e.g., minimum $16 US wage/hour and unionizing ability).

A situation where two or more countries impose tariffs or other trade restrictions on each other to decrease trade between the nations

The illegal copying, use, or distribution of proprietary information or creations.

Policies that restrict imports and promote domestic goods and services.

A tax imposed on imported goods.

A tax on goods coming into a country.

A limit on the quantity of a good that can be imported.

An agreement by an exporting country to limit the amount of a product it exports to another country.

Government regulations limiting the amount of foreign currency that can be bought or sold.

A tariff calculated as a percentage of the imported good's value.

A tariff calculated as a fixed amount per unit of the imported good.

A protectionist argument that new industries need temporary protection from foreign competition to develop and become successful.

A protectionist argument that protecting domestic industries and jobs is vital for maintaining employment levels.

A protectionist argument used to restrict trade & investment based on national defense concerns.

The ability of a country to produce a good or service at a lower opportunity cost than other countries.

All involved parties benefit economically from trade since all parties gain a surplus.

A theory suggesting trade arises from differences in countries' factor endowments (labor/capital).

National regulations imposed on foreign products to ensure safety and quality.

Government restrictions on foreign ownership in specific sectors.

An international organization that regulates global trade and resolves disputes.

Governments limiting foreign company access to typical sales channels.

The process of packaging and selling financial assets, such as mortgages, into securities that can be traded on markets.

A monetary policy where a central bank buys government bonds and other securities to lower interest rates and stimulate the economy.

Free trade area, customs union, common market, and economic union.

A group of countries that eliminate tariffs and quotas between members but maintain their own trade policies with non-members.

A group of countries that eliminate tariffs and quotas among members and adopt a common external tariff for non-members.

A customs union with the added feature of free movement of labor and capital among member countries.

When a country replaces domestic production with more efficient imports from other members of an economic integration group.

When a country replaces imports from outside the bloc with less efficient imports from within the bloc.

The General Agreement on Tariffs and Trade (GATT) has been highly effective in reducing trade barriers, especially tariffs, between nations, leading to increased global trade and economic growth.

The World Bank primarily assists countries in rebuilding after conflicts and promoting economic development. It focuses on projects like infrastructure improvements to foster economic growth and trade.

The International Monetary Fund (IMF) works to ensure stability within the global monetary system, enabling nations to engage in international trade smoothly. It also offers policy advice and temporary funding during financial crises.

Factors like interest rates, exchange rates, and inflation are beyond the control of global marketers, impacting demand for imports and a country's attractiveness for foreign investment.

The economic climate significantly influences a global marketer's decisions regarding: choosing foreign markets to enter, local market strategies, resource allocation, and market exit decisions.

A nation's population size indicates its market potential. Larger populations generally translate to higher demand for imported goods.

Per capita income (Gross National Income - GNI) reflects purchasing power and is a crucial indicator of a market's potential for various products.

Fluctuations in exchange rates significantly influence the demand for imported goods and services. A weak currency makes imports more expensive, while a strong currency makes them cheaper.

Inflation, measured using the Consumer Price Index (CPI) or Producer Price Index (PLI), reflects rising prices for a standard basket of goods. Governments often raise interest rates to combat inflation.

BOP (Base of the Pyramid) Marketing emphasizes the vast potential of low-income consumers, highlighting their combined purchasing power despite individual limitations.

Whirlpool successfully targets the BOP market by offering affordable washing machines in countries like China, India, and Brazil.

Opponents argue that the BOP market estimate of 4 billion consumers is exaggerated, low-income households prioritize essential goods, and reaching this fragmented market is challenging.

The Great Recession, a banking crisis turned economic crisis, resulted in weak economic growth, recessions, and slow growth among developed and developing economies.

The financial crisis was characterized by massive layoffs across the globe, leading to low savings, job insecurity, low consumer confidence, and pressure on governments to stimulate economies through fiscal and monetary policies.