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GLOBAL TRADE ANDREGULATIONS

GLOBALIZATION

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

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

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

BALANCE OF TRADE

• Comparisons of the value of a countries imports and exports.• What is our balance of trade? • Favorable or Unfavorable?

TRADE AGREEMENTS AND LAWS

•Quotas• Countries set quotas that limit how much can be

imported• Helps create a favorable balance of trade

TRADE AGREEMENTS

•Tariffs• Tax on imported goods• Helps create a favorable balance of trade

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

WORLD TRADE ORGANIZATION

• Governs world trade• Sets trade practices to be fair for all nations• Negotiates disputesImage source: http://www.wto.org/english/news_e/pres97_e/pr79_e.htm

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

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