New User Special Price Expires in

Let's log you in.

Sign in with Facebook


Don't have a StudySoup account? Create one here!


Create a StudySoup account

Be part of our community, it's free to join!

Sign up with Facebook


Create your account
By creating an account you agree to StudySoup's terms and conditions and privacy policy

Already have a StudySoup account? Login here

INBS 250

by: Maria Notetaker
Maria Notetaker

Preview These Notes for FREE

Get a free preview of these Notes, just enter your email below.

Unlock Preview
Unlock Preview

Preview these materials now for free

Why put in your email? Get access to more of this material and other relevant free materials for your school

View Preview

About this Document

Chapter 7 Notes
Introduction to International Business
Class Notes
25 ?




Popular in Introduction to International Business

Popular in International Business

This 3 page Class Notes was uploaded by Maria Notetaker on Thursday September 15, 2016. The Class Notes belongs to INBS 250 at Montclair State University taught by Nahra in Spring 2015. Since its upload, it has received 9 views. For similar materials see Introduction to International Business in International Business at Montclair State University.

Similar to INBS 250 at MSU

Popular in International Business


Reviews for INBS 250


Report this Material


What is Karma?


Karma is the currency of StudySoup.

You can buy or earn more Karma at anytime and redeem it for class notes, study guides, flashcards, and more!

Date Created: 09/15/16
Ch. 7 - Political Systems of Environment Friday, February 13, 2015 11:07 AM   What is the political reality of international trade?  Free trade: eliminate tariffs on products and services; eliminate trade barriers (rules and  regulations gov. put in place to create obstacles)   How do govs intervene in markets?  Tariffs: taxes levied on imports that raise the cost of imported products (the friendlier we  are with a country, the lower their tariffs) o Specific tariffs: fixed charge for each product o Ad valorem tariffs: percentage we add on a specific product  Subsidies: money gov. gives back to specific industries so they can sell the product at a  cheaper price (form taxpayers) o Main ex: farming   Import Quotas: limit of number of units you can import during the period of one year o Tariff rate quotas o Quota rent  Voluntary Export Restraints: "try to limit yourself to that amount we gave you, if you go  over the quota, we stop your shipments"  Local content requirements: demand that some specific fraction of a good be produced  domestically; have to buy raw materials from local market so it will create jobs and  industries  Administrative Policies: rules and regulations gov. come up with to restrict access to  market (to make it easy or complicated for companies to do business) o Policies hurt consumers by limiting choice  Antidumping policies (countervailing duties): cannot sell product less than manufacturing or cost of production  o Dumping= selling goods in a foreign market below costs of production or selling  goods in a foreign market below their "fair" market value     Why do govs. intervene in markets?  To protect jobs  To protect important industries that are related to the security of the country o Ex: steel: US is keeping it because it would impact the well­being of the country;  don't want other countries to gain technology that will harm us  Retaliation for unfair foreign competition: when govs take or threaten to take specific  actions, other countries may remove trade barriers; if threatened gov does not back down,  tensions can escalate and new trade barriers can be enacted  To protect consumers from "dangerous" products: limit "unsafe" products  To further the goals of foreign policy: good relationships instead of bad  To protect human rights of individuals through trade policy actions *  To protect the environment * *common in industrial countries, not developing countries     Economic arguments for gov. intervention  Infant industry: industry that did not exist in the country and the gov is trying to create o Impose tariffs to increase volume to compete in the marketplace (Brazil put tariffs on imported cars to pressure local businesses to invest/open up plants for cars)   General agreement on tariffs and trade (GATT): objective to liberalize world trade ; eliminate  tariffs; free access = allow foreign companies to come in and treat them as local companies  (rights/no discrimination) ; was not successful  ­WTO was created in 1995 to replace GATT; had a monitoring process and dispute  settlement (unlike GATT) ; 160 countries are a part of the WTO                                            


Buy Material

Are you sure you want to buy this material for

25 Karma

Buy Material

BOOM! Enjoy Your Free Notes!

We've added these Notes to your profile, click here to view them now.


You're already Subscribed!

Looks like you've already subscribed to StudySoup, you won't need to purchase another subscription to get this material. To access this material simply click 'View Full Document'

Why people love StudySoup

Steve Martinelli UC Los Angeles

"There's no way I would have passed my Organic Chemistry class this semester without the notes and study guides I got from StudySoup."

Amaris Trozzo George Washington University

"I made $350 in just two days after posting my first study guide."

Bentley McCaw University of Florida

"I was shooting for a perfect 4.0 GPA this semester. Having StudySoup as a study aid was critical to helping me achieve my goal...and I nailed it!"


"Their 'Elite Notetakers' are making over $1,200/month in sales by creating high quality content that helps their classmates in a time of need."

Become an Elite Notetaker and start selling your notes online!

Refund Policy


All subscriptions to StudySoup are paid in full at the time of subscribing. To change your credit card information or to cancel your subscription, go to "Edit Settings". All credit card information will be available there. If you should decide to cancel your subscription, it will continue to be valid until the next payment period, as all payments for the current period were made in advance. For special circumstances, please email


StudySoup has more than 1 million course-specific study resources to help students study smarter. If you’re having trouble finding what you’re looking for, our customer support team can help you find what you need! Feel free to contact them here:

Recurring Subscriptions: If you have canceled your recurring subscription on the day of renewal and have not downloaded any documents, you may request a refund by submitting an email to

Satisfaction Guarantee: If you’re not satisfied with your subscription, you can contact us for further help. Contact must be made within 3 business days of your subscription purchase and your refund request will be subject for review.

Please Note: Refunds can never be provided more than 30 days after the initial purchase date regardless of your activity on the site.