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2. Restrictions of exports  In addition to imposing restraints on imports, nations also control their exports.  The reasons are (1)short supply, (2)national security and (3) foreign policy purposes, or (4)the desire to retain capital.  National security controls---the control of weapons exports or hightechnology exports that might adversely affect the safety of the nation.

3. Effects of restricting exportation of goods  for reasons of n/v-ing and n/v-ing  Restrict the business opportunities of firms.  Similar products may easily be supplied by companies in other nations.  Although perhaps valuable as a tool of international relations, such policies give a country’s firms the reputation of being unreliable suppliers and may divert orders to firms in other nations.

4. Restrictions of the exportation of capital  Capital flight: The flowof private funds abroad because investors believe that the return on investment or the safety of capital is not sufficiently ensured in their own countries.  Result: By doing so, the holders of capital deprive their domestic economy of much- needed investment funds.

5. What if governments impose restrictions on the export of funds?  (1)The desire to transfer capital abroad only increases. Why?  Because companies and individuals are ingenious in their efforts to achieve capital flight, governments, particularly in developing countries, continue to suffer.  Ingenious: having a lot of clever new ideas and good at inventing things.  (2)Few new outside investors will enter the country because they fear that dividends and profits will not be remitted easily.

6. Export promotion efforts  Why?  To help domestic firms enter and maintain their position in international markets  and to match or counteract similar export promotion efforts by other nations.  How? four categories  A. Export information and advice  B. Production support  C. Marketing support  D. Finance and guarantees

7. Please express the meaning with your own words  The intensity of support varies by country.  3 1000  compared with  33 1000

8. U.S Export Promotion  Given the deterioration of the U.S. trade balance  Provide data on foreign trade and market developments  Post hundreds of professionals around the world to gather information and to assist business executives in the activities abroad.

9. 1 A national export strategy has been formulated  a national network of export assistance centers has been created, capable of providing one-stop shops for exporters in search of export counselling and financial assistance.  an official interagency advocacy network to help win overseas contracts for large government purchases abroad.

10. 2 Export financing  Provides firms with long-term loans and loan guarantees  bid on contracts  Mixed aid credits: the credits, wich take the form of loans composed partially of commercial interest rates and partially of highly subsidized developmental aid interest rates, resulting in very low interest loans to exporters.

11. 3 Tax legislation  In the past  be full subject to  the cost of living abroad  impose a significant burden on  As a result  foreign subsidiaris  a revision of the tax code  allow… to remain tax-free  be posted abroad  specify the use of

12. Problems raised  A. the justification of the expenditure of public funds for profit-driven activities.  B. the capability of government to provide such support.  C. the distortion of the flow of trade