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Published byPhilip Franklin Roberts Modified over 8 years ago
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Int’l Econ #2 Benefits of Trade
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DUE DATES! Fri: –HTML portfolio: 1 Month Budget, Life!, Reflection –Intl Econ #1 and up Tues: textbooks –any/all make-up work W/Th: final exam
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Trade Barriers (Restrictions) Protectionism : protect American made products by… 1.Protective Tariffs: high tariffs added to the cost of foreign made products 2.Quotas: only a certain amount of foreign made products into US
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Problems w/ Trade Barriers Nations will retaliate w/their own tariffs & quotas Costs $ to enforce – somebody has to oversee all this! Keeps prices higher?
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Trade as a Tool Embargos : restricted / no trade with certain countries –North Korea NO tap shoes for you! –Cuba
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Free Trade No tariffs or other restrictions to trade
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European Union Many Eur. countries participate in a common market – free trade, same currency (Euro) Act like the US – one large country w/50 states
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NAFTA North American Free Trade Agreement 1990s: Canada, Mexico & US Advantages: Very controversial! –WHY?
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Disadvantages of Free Trade Outsourcing : –American companies sending their jobs overseas where it is cheaper! –What kind of jobs can be outsourced? –Which ones will always have to be in US?
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Intl Econ #3: Is Wal-Mart Good for America? How does W-M keep its prices low? How does free trade benefit China? How does it benefit the US? What are the drawbacks (disadvantages) of free trade?
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Pro’s/Con’s of Free Trade: PRO: –Make products where it’s cheapest –Results in cheap products –Jobs for those in struggling areas CON: –Lose jobs in expensive areas (US) aka outsourcing –Negative externalities
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