International Trade

International Trade

1. Barriers to Trade

   • Proteoctionist policies
     • The goods and services from one political region may be prohibited from entering or leaving a market
     • Tariffs
     • Non Tariff Barriers (NTBs)
       • Quotas
         •  specific limits on the quantity of imports or their value.
       • Subsidies
         • payments made to particular industries to help them to be competitive on the international market. Examples of subsidies include depreciation allowances, cash grants and tax holidays. 
       • Administrative Regulations
         • include bureaucratic procedures, systems of advance payment, minimal domestic content rules, special marketing standards and health and safety provisions. 
       • Currency Controls
         • limit the availability of foreign currency for the purchase of foreign goods. 
       • Voluntary Export Restraints
         • whereby one country agrees to limit its exports to a third country (or countries). This agreement is usually made because the importing country (countries) threatens to place barriers against the goods of the exporting country.

2. The Medium of Exchange

3. Liberal

   • Comparative Advantage
     • Countries will be better off if they specialize in what they are relatively good at
   • Protectionism is inefficient
     • Reduces competition
     • Increases Monopoly power

4. Critical Perspective