MGMT 3000 1st Edition Lecture16 Outline of Last Lecture I Social responsibility introduction II Different types of social responsibility III Social responsiveness IV Personal ethical decision making Outline of current Lecture I Global business II Trade barriers III Regional Trading zones IV Customer benefits from trade Current Lecture Global Business Buying and selling of goods and services by people from different countries Impact of global business Multinational corporations firms that own business in 2 or more countries Direct foreign investment when a company builds new business or buys existing business in foreign country Trade Barriers Historically governments use trade barriers to make it difficult or expensive to buy imported goods Protectionism use of trade barriers to protect domestic industries Tariff tax on imported goods Non tariff barriers nontax methods of increasing cost or reducing volume of imported goods o Quotas limits on volume of imports o Voluntary export restraints voluntarily imposed limits on number or volume of products exported to a particular country o Government import standards protect health and safety of citizens o Subsidies help develop and protect companies in special industries o Customs classification customs agents classify products into categories and then the category is evaluate for the size of tariffs or whether to impose quotas GATT was an agreement to regulate trade between more than 120 countries General Agreement on tariffs and Trade 1947 to 1995 These notes represent a detailed interpretation of the professor s lecture GradeBuddy is best used as a supplement to your own notes not as a substitute Members engaged in 8 rounds of negotiations Replaced by WTO World trade organization Only international organization dealing with global rules for trade between nations main function to ensure that trade flows predictably freely and smoothly Regional trading zones zones in which tariff and nontariff barriers are reduced or eliminated EU Maastricht treaty NA NAFTA US Dominican republic central America CAFTA South America UNASUR Asia ASEAN APEC Consumers trade barriers and trade agreements For consumers these forces increase competition which causes an increase in choice and purchase power while prices decrease The US marketplace is the most competitive marketplace in the world and one of the easiest for foreign markets to enter
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