International Trade (3)

Tariff is a set limit on the amount of a good that can be imported

Asset seizure with compensation

Foreign investment laws affect the type of entry strategy

Bans on exports or imports that forbid trade in specific goods with specific countries

Free trade protect infant industries

Country risk arises from differences in language, lifestyles, mind-sets, customs, and religion

Also called case law

Environmental laws attach rights, duties and obligations to the contracting parties.

Resolve disputes

Refers to the firm’s potential loss or failure from poorly developed or executed business strategies, tactics, etc.

Currency risk refers to the risk of adverse fluctuations in exchange rates

Foreign markets frequently differ in terms of political and legal systems

Is a set of formal instituitions that constitute a government. It includes legistlative bodies, political parties, lobby

Free trade is the best way to pursue comparative advantage

Arises from differences in language, lifestyles, mind-sets, customs, and religion

In an emerging industry government can impose temporary trade barriers on foreign imports to help young national firms