Types of Trade Restrictions (cont'd a Nontariff barriers(cont'd a Currency devaluation -the reduction of the value of a nation's currency relative to the currencies of other nations Bureaucratic red tape a subtle form of trade restriction that imposes unnecessarily burdensome and complex standards and requirements for imported goods Cultural attitudes-can impede acceptance of products in foreign countries
Types of Trade Restrictions (cont’d) ◼ Nontariff barriers (cont’d) ◼ Currency devaluation—the reduction of the value of a nation’s currency relative to the currencies of other nations ◼ Bureaucratic red tape—a subtle form of trade restriction that imposes unnecessarily burdensome and complex standards and requirements for imported goods ◼ Cultural attitudes—can impede acceptance of products in foreign countries
U.S. Trade Restrictions/ Sanctions ) Balkans 8)Iraq 2) Belarus 9) liberia 3)Burma 10)North Korea 4)Ivory Coast 11) Sudan 5) Cuba 12) Syria 6) Congo 13) Zimbabwe 7) ran For more information go to http://www.treas.gov/offices/enforcement/ofac/programs/ maintained by the U.s. Department of the Treasury
U.S. Trade Restrictions / Sanctions 1) Balkans 2) Belarus 3) Burma 4) Ivory Coast 5) Cuba 6) Congo 7) Iran 8) Iraq 9) Liberia 10) North Korea 11) Sudan 12) Syria 13) Zimbabwe For more information go to: http://www.treas.gov/offices/enforcement/ofac/programs/ maintained by the U.S. Department of the Treasury
Reasons for and against Trade restrictions FOR AGAINST To equalize a nations balance Higher prices for of payments consumers To protect new or weak industries Restriction of consumers' To protect national security choices To protect the health of Misallocation of citizens international resources To retaliate for another Loss of jobs country's trade restrictions To protect domestic jobs
Reasons for and Against Trade Restrictions FOR ◼ To equalize a nation’s balance of payments ◼ To protect new or weak industries ◼ To protect national security ◼ To protect the health of citizens ◼ To retaliate for another country’s trade restrictions ◼ To protect domestic jobs AGAINST ◼ Higher prices for consumers ◼ Restriction of consumers’ choices ◼ Misallocation of international resources ◼ Loss of jobs
The extent of International Business Although the worldwide recessions of 1991, 2001- 2002, and 2008 slowed the rate of growth, globalization is a reality of our time In the U.S. international trade accounts for over 14 of GDP a Trade barriers are decreasing, more competitors are entering the global marketplace, creating more choices for consumers and new job opportunities a International business will grow with the expansion of commercial use of the Internet
The Extent of International Business ◼ Although the worldwide recessions of 1991, 2001- 2002, and 2008 slowed the rate of growth, globalization is a reality of our time ◼ In the U.S., international trade accounts for over ¼ of GDP ◼ Trade barriers are decreasing, more competitors are entering the global marketplace, creating more choices for consumers and new job opportunities ◼ International business will grow with the expansion of commercial use of the Internet
The World economic outlook for rade Economic performance among nations Is not equal Growth in advanced countries has slowed while emerging and developing economies continue to grow rapidly At the current rate of global economic growth, world production of goods and services will double bv 2025
The World Economic Outlook for Trade ◼ Economic performance among nations is not equal; ◼ Growth in advanced countries has slowed, while emerging and developing economies continue to grow rapidly; ◼ At the current rate of global economic growth, world production of goods and services will double by 2025