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Nafta Case Study

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Pros Cons
The most-direct economic benefits from international trade arise from the fact that countries are not all the same in their production capabilities. A business can take advantage of these differences in production capabilities
Eg.Bananas & USA
Japan – Beef On the other hand, it can mean more competition and less profits for the goods or services that a company sells.
Imports
Pros Cons
Reduced prices Reduce demand for in-country products Less sales & profits Less jobs Another issue is the need for transportation. It cost money to transports goods and the price of transport can be unstable
More choices
Exports
Pros Cons
Excess prod can be used in the country

This week – international laws that apply to trading
Govt create trading policies that ensure greatest benefits for ppl & businesses of their countries
How they do this? _ by creating rules/trade barriers for importing products

Trade barriers are government-induced restrictions on international trade . it slows/prevents trade with another country
Quotas - is a limit or control on the quantity/amount of products that can be imported (produced abroad and sold domestically)
Tariff - A tariff is a tax on imports or exports (an international trade tariff)
Subsidy is an assistance to a business or economic sector for producers
Govt Action → Prod cost↓ = price of goods↓
Eg. subsidies to encourage the sale of exports; subsidies on some foods to keep down the cost of living, especially in urban areas; and subsidies to encourage the expansion of farm production and achieve self-reliance in food production
Embargo is the partial or complete prohibition of commerce and trade with a particular country.
Embargoes are considered strong diplomatic measures imposed in an effort, by the imposing country, to elicit a given national-interest result from the country on which it is

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