GOVERNMENT INTERFERENCE WITH TRADE Raise Revenue Protect Jobs Developments Goals Balance of Payments Health & Safety Int’l Political Goals National Security Goals Control Prices Retaliation

TARIFFS Export Import Specific Ad Valorem Compound

QUOTAS Export Import Absolute Tariff Voluntary Export Restraints Embargo

FORMS OF TRADE CONTROL Tariffs Specific Ad Valorem Compound

FORMS OF TRADE CONTROL Tariffs Specific Ad Valorem Compound Non-Tariff Subsidies Exchange rate manipulation Customs valuation Special fees Quotas Buy local legislation Standards Licensing arrangements Foreign exchange control Administrative delays Reciprocal requirements Restriction on services

PROBLEMS ASSOCIATED WITH TRADE RESTRICTIONS Net National Loss Consumer Loss Administrative Costs Protected Industries become less competitive internationally Exchange Rate Effects Retaliation

IMPACT OF THE MNC The sheer size of many MNC’s is cause for concern -The sales of some corporations exceeds the GNP of many countries

IMPACT OF THE MNC Domestically it impacts: 1.Stockholders 2.Employees 3.Customers 4.Suppliers 5.Government 6.Society at large (pollution) -The power positions of each change over time

IMPACT OF THE MNC Internationally, the constituent groups of each nation seek to influence decisions on: 1.Location of production 2.Location of major decision making 3.Location of significant R&D facilities 4.Method of acquisition 5.Method of operation 6.Which markets to serve 7.What price to charge 8.How profits should be used