1. FA32 GLOBAL TRADE AND REGULATIONS

2. GLOBALIZATION The flow of goods, services, money, labor, technology across international borders.

3. EXPORT Products sent out from one country to others. What products do we export? CIA World Factbook: https://www.cia.gov/library/publications/the-world- factbook/geos/us.html Refer to Economy Tab https://www.cia.gov/library/publications/the-world- factbook/geos/us.html

4. IMPORT Goods that come into a country from foreign countries. What do we import? CIA Factbook: https://www.cia.gov/library/publications/the-world- factbook/geos/us.html Economy Tab https://www.cia.gov/library/publications/the-world- factbook/geos/us.html

5. BALANCE OF TRADE Comparisons of the value of a countries imports and exports. What is our balance of trade? Favorable or Unfavorable?

6. TRADE AGREEMENTS AND LAWS Quotas Countries set quotas that limit how much can be imported Helps create a favorable balance of trade

7. TRADE AGREEMENTS Tariffs Tax on imported goods Helps create a favorable balance of trade

8. FREE TRADE AGREEMENTS Movement of goods not restricted by tariffs or quotas We have a free trade agreement with our neighbors Canada and Mexico NAFTA North American Free Trade Agreement

9. WORLD TRADE ORGANIZATION Governs world trade Sets trade practices to be fair for all nations Negotiates disputes Image source: http://www.wto.org/english/news_e/pres97_e/pr79_e.htm

10. WTO AGREEMENT ON TEXTILES AND CLOTHING Phase out quotas and tariffs on clothing and textiles Advantage: Countries with lower wages Disadvantage: Countries with higher wages

11. GLOBAL SOURCING Choosing how, when, and where a company will manufacture its goods or purchase its products. Domestic or offshore sourcing Constantly changes to be competitive Lower prices or wages