- International economics is growing in importance due to increasing globalization and integration of markets. Exports have grown exponentially over the past 50 years and now make up nearly 30% of global GDP. Foreign direct investment has also increased dramatically.
- Since WWII, successive rounds of trade negotiations under GATT/WTO have lowered tariffs and reduced trade barriers, promoting greater openness of markets. The WTO now has 149 member countries working to liberalize trade in goods, services, and agriculture. Regional trade agreements have also opened markets beyond WTO agreements. These changes demonstrate the rapid integration and interdependence of the global economy.
Political risk in internationally diversified portfoliosStavros A. Zenios
We show that internationally diversified portfolios carry sizeable political risk premia. We propose a mean to conditional Value-at-Risk (MTC) optimization model for skewed frontiers to hedge global political risk, develop an inference test, and establish that diversification benefits persist with political risk hedging. The hedged international portfolio of US investors with no short sales outperforms the index in both MTC and Sharpe ratios. Gains persist when also hedging currency risk, diversifying in emerging markets only, and during the crisis period, and increase for long-horizon investors and with short sales.
The results have implications for the home equity puzzle.
Uco bank p[1].o.exam2006objectiveenglishpaperkhaneducation
The passage discusses the growth of India's gems and jewelry exports sector. Some key points:
- Exports grew over 50% in 2004-05 and are on track to grow at a similar rate in 2005-06 based on strong first half performance.
- Export growth has been broad-based across jewelry and gem exports.
- Efforts to build export infrastructure like gems zones, technology missions, and FDI have supported export growth.
- While jewelry export performance lags potential, India can become a major global player by customizing designs rather than relying on standard products.
Norway discovered oil off its coast in 1971. This document analyzes whether Norway was able to escape both the "natural resource curse" where resource-rich countries often grow more slowly, and "Dutch Disease" where a resource boom can displace other industries. Through statistical analysis comparing Norway's growth to neighboring Denmark and Sweden after 1971, the document finds that Norway was able to catch up to its neighbors and then maintain higher growth rates, indicating it escaped both the curse and disease. The author examines potential explanations for Norway's success in managing its oil wealth.
This document is a CV for Sabin Ahmed, who received a Ph.D. in Economics from George Washington University in 2014. His research focuses on the role of foreign direct investment in developing countries. He has worked on several papers related to this topic and has consulting experience with the World Bank. He also has research experience with George Washington University Law School and has taught economics at the university level.
David Ricardo developed the theory that countries should specialize in producing goods for which they have a comparative advantage. This allows countries to maximize global production. For example, India is more efficient at producing wheat than cloth due to its abundant labor, while England is more efficient at producing cloth using capital. If India specializes in wheat and England in cloth, together they can produce 1600 units of each good rather than 1000 units each as before, increasing total world output. However, Ricardo's theory relies on countries trusting each other through open trade.
International Trade Theories document discusses several theories of international trade:
1. Mercantilism advocated accumulating wealth through exports and limiting imports using government policies.
2. Adam Smith's absolute advantage theory states that countries should specialize in goods they can produce more efficiently.
3. David Ricardo's comparative advantage theory recognizes that even without an absolute advantage, mutual trade benefits are possible if countries specialize in goods with lower opportunity costs of production.
The document provides an overview of several theories of international trade, including:
1) Mercantilism holds that a nation's wealth depends on trade surpluses and advocates maximizing exports and minimizing imports.
2) Absolute advantage theory proposes that countries should specialize in goods they can produce most efficiently.
3) Comparative advantage theory extends this to argue that trade benefits both parties even if one country is more efficient in all areas.
4) Heckscher-Ohlin theory states that countries will export goods that rely on their abundant factors of production and import goods that rely on scarce factors.
Mercantilism encouraged exports and discouraged imports to accumulate wealth, usually in gold and silver. Adam Smith argued that free trade and specializing in absolute advantages benefits countries more. Comparative advantage theory extended this by showing even without absolute advantages, all countries gain from trade. Porter's diamond model explains how national competitive advantages arise from factor conditions, demand conditions, related/supporting industries, and firm strategy/rivalry within a country.
Political risk in internationally diversified portfoliosStavros A. Zenios
We show that internationally diversified portfolios carry sizeable political risk premia. We propose a mean to conditional Value-at-Risk (MTC) optimization model for skewed frontiers to hedge global political risk, develop an inference test, and establish that diversification benefits persist with political risk hedging. The hedged international portfolio of US investors with no short sales outperforms the index in both MTC and Sharpe ratios. Gains persist when also hedging currency risk, diversifying in emerging markets only, and during the crisis period, and increase for long-horizon investors and with short sales.
The results have implications for the home equity puzzle.
Uco bank p[1].o.exam2006objectiveenglishpaperkhaneducation
The passage discusses the growth of India's gems and jewelry exports sector. Some key points:
- Exports grew over 50% in 2004-05 and are on track to grow at a similar rate in 2005-06 based on strong first half performance.
- Export growth has been broad-based across jewelry and gem exports.
- Efforts to build export infrastructure like gems zones, technology missions, and FDI have supported export growth.
- While jewelry export performance lags potential, India can become a major global player by customizing designs rather than relying on standard products.
Norway discovered oil off its coast in 1971. This document analyzes whether Norway was able to escape both the "natural resource curse" where resource-rich countries often grow more slowly, and "Dutch Disease" where a resource boom can displace other industries. Through statistical analysis comparing Norway's growth to neighboring Denmark and Sweden after 1971, the document finds that Norway was able to catch up to its neighbors and then maintain higher growth rates, indicating it escaped both the curse and disease. The author examines potential explanations for Norway's success in managing its oil wealth.
This document is a CV for Sabin Ahmed, who received a Ph.D. in Economics from George Washington University in 2014. His research focuses on the role of foreign direct investment in developing countries. He has worked on several papers related to this topic and has consulting experience with the World Bank. He also has research experience with George Washington University Law School and has taught economics at the university level.
David Ricardo developed the theory that countries should specialize in producing goods for which they have a comparative advantage. This allows countries to maximize global production. For example, India is more efficient at producing wheat than cloth due to its abundant labor, while England is more efficient at producing cloth using capital. If India specializes in wheat and England in cloth, together they can produce 1600 units of each good rather than 1000 units each as before, increasing total world output. However, Ricardo's theory relies on countries trusting each other through open trade.
International Trade Theories document discusses several theories of international trade:
1. Mercantilism advocated accumulating wealth through exports and limiting imports using government policies.
2. Adam Smith's absolute advantage theory states that countries should specialize in goods they can produce more efficiently.
3. David Ricardo's comparative advantage theory recognizes that even without an absolute advantage, mutual trade benefits are possible if countries specialize in goods with lower opportunity costs of production.
The document provides an overview of several theories of international trade, including:
1) Mercantilism holds that a nation's wealth depends on trade surpluses and advocates maximizing exports and minimizing imports.
2) Absolute advantage theory proposes that countries should specialize in goods they can produce most efficiently.
3) Comparative advantage theory extends this to argue that trade benefits both parties even if one country is more efficient in all areas.
4) Heckscher-Ohlin theory states that countries will export goods that rely on their abundant factors of production and import goods that rely on scarce factors.
Mercantilism encouraged exports and discouraged imports to accumulate wealth, usually in gold and silver. Adam Smith argued that free trade and specializing in absolute advantages benefits countries more. Comparative advantage theory extended this by showing even without absolute advantages, all countries gain from trade. Porter's diamond model explains how national competitive advantages arise from factor conditions, demand conditions, related/supporting industries, and firm strategy/rivalry within a country.
International business mumbai university solved paper 2008shrund
This document provides information about an international business exam from Mumbai University in 2008. It includes sample exam questions and answers about topics like globalization, reasons for entering international business, and foreign exchange risks and trade barriers.
The first question is about defining globalization and how global organizations emerge to enjoy global leadership. The second question asks why companies enter international business when domestic opportunities exist. The third question requires short notes on foreign exchange risks and trade barriers. Sample answers are provided that discuss topics like stages of becoming a global organization, reasons for internationalization, and types of foreign exchange and trade barriers.
The document discusses international trade and business. It covers 5 modules that include topics like concepts of international trade, theories of trade, multinational corporations, trade barriers, international agreements like WTO and IMF, foreign trade of India, foreign exchange markets, and payments. International trade allows access to goods and services not available domestically and brings more competitive pricing. It benefits participating countries by transferring financial resources and allowing residents to earn higher returns. However, international business also involves additional risks related to exchange rates, political instability in other countries, and economic fluctuations.
Globalization has increased international trade and foreign direct investment, integrating national economies. This has made business environments increasingly global and competitive, even for domestic firms. Firms now face competition from low-cost foreign producers in their domestic markets. To remain competitive, firms must become global in their organization of production and marketing. Some key reasons for firms to internationalize include seeking growth opportunities in foreign markets, taking advantage of lower costs abroad, and responding to competitive pressures in the domestic market from global rivals. However, international business also presents special challenges like differences in political, legal, cultural, economic and business environments across countries.
1. Please visit the following link on the Economist.com and an.docxjackiewalcutt
1. Please visit the following link on the Economist.com and answer the following three questions based
on data from any of the tables here. (There are about half a dozen tables linked under “economic and
financial indicators” on the right side of the page. These tables contain data on output, prices, wages,
inflation, interest rates etc.)
http://www.economist.com/markets-data
For the purposes of answering these questions, assume that interest rates refer to the annual rates on
10-year government bonds. If necessary, please state any other assumptions. Based on Britain (₤)
and Canada (C$):
a. For practical purposes, does real interest rate parity exist between these two countries? Please
show me your calculations.
b. Compared to last year, has the C$ appreciated or depreciated against the pound, and by how
much? (Please provide your reasoning and computations). Is this what you would expect based
on your answer to part a? Explain your reasoning.
c. Identify any two other factors from the tables that, in general, predict exchange rate appreciation
or depreciation, and determine if the appreciation or depreciation of the C$ is consistent with
what you might predict
2. In general, several variables appear to affect the future value of a currency. Everything else being
equal, with reference to the home country, clearly explain in a couple of sentences how each of the
following variables are likely to appreciate or depreciate the country’s currency: (please think
carefully before you answer these questions). (6 points)
a. Increase in GDP/output
b. Increase in money supply (M)
c. Increase in nominal interest rate (In)
d. Increase in real interest rate (Ir)
e. Increase in inflation
f. Increase in current account surplus
3. Compare and contrast home replication, global, transnational and multi-domestic strategies. Please
provide some examples of each type of strategy in your discussion. Please ensure that your
discussion contains an understanding of the conditions under which each strategy might be considered
appropriate.
2 points
2 points
2 points
2 points
3 points
4. You are considering exchanging Swiss Francs (SF) for Japanese Yen (Y). At the bank, you see the
following rates posted. (Please note that for full credit, you must show the steps to the correct answer
clearly and cleanly, not just the final answer.)
SF/$ = 0.9154 Y/$ = 100.26
a. What is the Y/SF exchange rate?
b. What is the SF/Y exchange rate?
c. If the SF appreciated by 10% what would then new rate be?
d. If the Yen depreciated by 25% relative to the original exchange rate (i.e. answer to part a, or
part b), what would the new rate be?
5. In recent months, several emerging markets such as India, Indonesia, Brazil and to a lesser extent
Brazil have seen a sharp depreciation of their currencies against the US dollar, as well as an increase
in volatility of their markets. In orde ...
Globalization allows companies and countries to optimize resources globally and cater to global
customers. Toyota is provided as an example of a highly globalized company, with one-third of its global
output coming from affiliates in 25 countries. Key indicators of globalization for a company include the
international dispersion of sales, assets, intra-firm trade, and technology flows. Globalization for
companies normally occurs through six stages - from initially establishing a presence in one overseas
market to eventually emerging as a truly global enterprise with global production, investments, and
brand.
The document provides notes for an international business administration course. It outlines the recommended textbook and instructor, Dr. Sandeep Solanki. The first unit covers the concept of international trade, including an overview of factors affecting trade like inflation, competition, and foreign investment. Benefits of trade are greater choice and job creation. Dangers of trade dependency include economic turmoil in one nation harming others. Regional economic integration and its levels are also discussed.
Writing An Descriptive Essays - How To Write A DBeth Johnson
The document discusses Simon Luttichuy's still life painting that includes self-portraits of the artist. It argues that such still life paintings are not just about contemplating life and time passing, but also celebrate life, foreshadow death, illustrate self-awareness, and portray the artist in a god-like state by entangling their identity within the painting. The painting contains portraits of the artist, sculptures, and objects like a bone and palette that contemplate death and time passing.
This document discusses globalization and international business. It defines globalization as the trend toward greater economic, cultural, political and technological interdependence among national institutions and economies. It identifies two key drivers of globalization as regional trade agreements and technological innovation. The document also summarizes the debates around globalization, including its impacts on jobs, wages, labor standards, and national sovereignty. It describes different types of firms involved in international business, such as multinational corporations, small businesses, and born global firms.
This document provides an introduction to international business management. It defines international business as transactions that cross national borders, and defines globalization as the increasing integration of economies, markets, trade, and communications globally. The document discusses factors driving globalization like declining trade barriers and technological advances. It also outlines some advantages of international business like accessing new markets and diversifying risks. Finally, it introduces topics that will be covered in subsequent chapters, such as international trade, strategic management, and ethics in international business.
The document provides an overview of international business. It discusses how globalization and liberalization have increased the importance of international business. Key drivers include the rise of multinational companies, technological advances, reductions in transportation and communication costs, and increasing competition in domestic markets from foreign firms. International business allows companies to leverage experience, realize scale economies, better utilize resources, and develop global strategies to achieve higher profits by accessing markets abroad.
MD4099 Assessment 1 – Individual EssayDetails of assessmentAsAbramMartino96
This document outlines an assessment for an individual essay as part of an international management module. Students must write a 2,000 word essay discussing the impact of COVID-19 on international trade for one of several listed countries. They must address the country's trade relations, foreign direct investment flows, economic growth forecast, and policy responses. The essay should apply relevant economic principles and include an industry example, implications for globalization, and over 20 references. A sample extract demonstrates addressing some initial requirements but a full student response requires more depth, detail, and their own examples and analysis.
Ib0017 – international business environment and international lawsmumbahelp
This document provides information about obtaining fully solved Fall 2014 assignments. It lists the contact information to email or call for assistance, including the email address "help.mbaassignments@gmail.com" and phone number 08263069601. It then provides details of an assignment for the subject "International Business Environment and International Law", including 6 questions covering topics like factors affecting economic environment, relationship between law and international law, carriage of goods by sea, export cartels, intellectual property rights under TRIPS, and types of investment treaties. Students are instructed to answer all questions, with longer answers of around 400 words for 10 mark questions.
This document provides an overview of the contents of a textbook on international business management. It includes 5 chapters that cover topics such as: introduction to international business concepts; international trade and investment; international strategic management; production, marketing, finance, and human resources in global business; and conflict management and ethics. The introduction chapter defines key terms and discusses factors driving globalization, the international business environment, and the impact of globalization. Subsequent chapters cover issues related to international trade agreements, entry strategies, organizational structures, and challenges of operating globally.
I need a 125 word reply to each of the four following forum postings.docxtroutmanboris
I need a 125 word reply to each of the four following forum postings in a finance class (500 words total) You are responding to comments made by other students in the class. MUST BE ORIGINAL!
Forum #1
When an organization decides to engage in international financing activities, they also take on additional risk as well as opportunities. The main risks that are associated with businesses engaging in international finance include foreign exchange risk and political risk. These risks may sometimes make it difficult to maintain constant and reliable revenue. When an organization decides to engage in international financing activities, they also take on additional risk as well as opportunities. The main risks that are associated with businesses engaging in international finance include foreign exchange risk and political risk. These risks may sometimes make it difficult to maintain constant and reliable revenue. Foreign exchange risk occurs when the value of investment fluctuates due to changes in a currency's exchange rate. When a domestic currency appreciates against a foreign currency, profit or returns earned in the foreign country will decrease after being exchanged back to the domestic currency. Political risk transpires when a country's government unexpectedly changes its policies, which now negatively affect the foreign company. These policy changes can include such things as trade barriers, which serve to limit or prevent international trade. “Since 2010, one in ten of the countries surveyed have experienced a significant increase in the level of short-term political risk. These risks include governments asserting control over natural resources, regimes being ousted by popular uprisings and the expropriation of foreign investors' assets” (Brown, Sophle. 2013).
References
Brown, Sophle. Political instability on the rise. Dec 11, 2013. Retrieved from web:
http://www.cnn.com/2013/12/11/business/maplecroft-political-risk/
Forum #2
Multinational companies seem to be the standard for future business. They are typically more productive and pay their workers more than comparable locally owned businesses (Eun & Renick, 2015). With the many advantages that are available to multinationals it is no surprise that companies are shifting in this direction. However, all of the advantages do not come risk free as you may have expected. Two of the significant risks associated with multinationals and international financial management are foreign exchange risk and political risks.
Foreign exchange risk is what would likely be the first thing you would consider when thinking about international finance. Exchange rates fluctuate on a regular basis and can be somewhat unpredictable at times. This has been the case since the early 1970s when fixed exchange rates were abandoned (Eun & Renick, 2015). Exchange risk is the difference between the exchange rate at the moment a business deal is closed for a given amount and the exchange rate at the moment when .
Mba1014 global economic environment 200413Stephen Ong
This document discusses globalization and its impact on businesses. It begins with an introduction to globalization and defining it as the deepening interdependence between countries through increased cross-border trade and financial flows. It then provides statistics on major economies and discusses factors driving globalization like declining trade barriers and technological advances. The document also covers debates around globalization, how it affects companies, and challenges they face in the global marketplace.
International Trade and Policy- Introduction by Neeraj Bhandari (Surkhet Nepal)Neeraj Bhandari
This document provides an overview of an international trade and policy course. The 6-unit course covers topics like international trade theories, economic growth and trade, trade policies, and economic integration. It lists two textbooks for the course. It then discusses what international trade is, its importance for firms and nations, and how it has grown. It covers reasons firms engage in trade like expanding markets and lowering costs. It also discusses modes of international business operations and how economic events in one country can impact others due to increased interdependence. Finally, it lists some international economic problems faced by different countries.
Country X has a comparative advantage in food production while Country Y has a comparative advantage in textile production. If Country X shifts resources to focus on food and Country Y shifts to focus on textiles, total production will increase for both goods. Through free trade where Country X exports food for Country Y's textiles, both countries can increase their consumption beyond what is possible through domestic production alone.
This document provides an outline for an international finance course. It includes 7 chapters that cover topics such as foreign exchange markets, international capital markets, time value of money, strategic decision making, international taxation, and international financial management. The course will be taught through traditional classroom teaching and multimedia presentations. Students will be evaluated based on attendance, assignments, classwork, and a final exam.
Is Foreign Ownership Beneficial for Creating Value -Seminar in Finance Paper (1)Osama Elaish
This document summarizes a literature review on whether foreign ownership is beneficial for creating value. It examines studies from both developed and emerging markets. The review finds that while there is generally a positive relationship between foreign ownership and value creation, the impact depends on factors like the level of development of the home and host countries. Foreign ownership seems to create more value when firms move between similar markets, like both being developed or emerging, compared to moving between different types of markets. The review faces some limitations and recommends further research on the topic.
This document outlines the syllabus, scheme, and regulations for a two-year Diploma in Pharmacy program. Some key details include:
- The duration of the course is two academic years with at least 180 working days per year plus 500 hours of practical training over 3 months.
- To be admitted, candidates must have passed science subjects at the intermediate level or equivalent exam. Admission is based on a pre-pharmacy test.
- To appear for exams, candidates must have attended at least 75% of classes. Some attendance relaxation may be granted.
- The course includes subjects like Pharmaceutics, Pharmaceutical Chemistry, Pharmacognosy, and more. Exams include theory and
This document provides information on accounting conventions and standards. It begins by explaining key accounting concepts and conventions such as consistency, full disclosure, materiality, and conservatism. It notes that accounting conventions provide uniform rules for recording transactions. The document then discusses Generally Accepted Accounting Principles (GAAP) and the various accounting standards issued by the Institute of Chartered Accountants of India to standardize practices. It provides examples of some common accounting standards such as those related to cash flows, inventories, depreciation, and revenue recognition.
International business mumbai university solved paper 2008shrund
This document provides information about an international business exam from Mumbai University in 2008. It includes sample exam questions and answers about topics like globalization, reasons for entering international business, and foreign exchange risks and trade barriers.
The first question is about defining globalization and how global organizations emerge to enjoy global leadership. The second question asks why companies enter international business when domestic opportunities exist. The third question requires short notes on foreign exchange risks and trade barriers. Sample answers are provided that discuss topics like stages of becoming a global organization, reasons for internationalization, and types of foreign exchange and trade barriers.
The document discusses international trade and business. It covers 5 modules that include topics like concepts of international trade, theories of trade, multinational corporations, trade barriers, international agreements like WTO and IMF, foreign trade of India, foreign exchange markets, and payments. International trade allows access to goods and services not available domestically and brings more competitive pricing. It benefits participating countries by transferring financial resources and allowing residents to earn higher returns. However, international business also involves additional risks related to exchange rates, political instability in other countries, and economic fluctuations.
Globalization has increased international trade and foreign direct investment, integrating national economies. This has made business environments increasingly global and competitive, even for domestic firms. Firms now face competition from low-cost foreign producers in their domestic markets. To remain competitive, firms must become global in their organization of production and marketing. Some key reasons for firms to internationalize include seeking growth opportunities in foreign markets, taking advantage of lower costs abroad, and responding to competitive pressures in the domestic market from global rivals. However, international business also presents special challenges like differences in political, legal, cultural, economic and business environments across countries.
1. Please visit the following link on the Economist.com and an.docxjackiewalcutt
1. Please visit the following link on the Economist.com and answer the following three questions based
on data from any of the tables here. (There are about half a dozen tables linked under “economic and
financial indicators” on the right side of the page. These tables contain data on output, prices, wages,
inflation, interest rates etc.)
http://www.economist.com/markets-data
For the purposes of answering these questions, assume that interest rates refer to the annual rates on
10-year government bonds. If necessary, please state any other assumptions. Based on Britain (₤)
and Canada (C$):
a. For practical purposes, does real interest rate parity exist between these two countries? Please
show me your calculations.
b. Compared to last year, has the C$ appreciated or depreciated against the pound, and by how
much? (Please provide your reasoning and computations). Is this what you would expect based
on your answer to part a? Explain your reasoning.
c. Identify any two other factors from the tables that, in general, predict exchange rate appreciation
or depreciation, and determine if the appreciation or depreciation of the C$ is consistent with
what you might predict
2. In general, several variables appear to affect the future value of a currency. Everything else being
equal, with reference to the home country, clearly explain in a couple of sentences how each of the
following variables are likely to appreciate or depreciate the country’s currency: (please think
carefully before you answer these questions). (6 points)
a. Increase in GDP/output
b. Increase in money supply (M)
c. Increase in nominal interest rate (In)
d. Increase in real interest rate (Ir)
e. Increase in inflation
f. Increase in current account surplus
3. Compare and contrast home replication, global, transnational and multi-domestic strategies. Please
provide some examples of each type of strategy in your discussion. Please ensure that your
discussion contains an understanding of the conditions under which each strategy might be considered
appropriate.
2 points
2 points
2 points
2 points
3 points
4. You are considering exchanging Swiss Francs (SF) for Japanese Yen (Y). At the bank, you see the
following rates posted. (Please note that for full credit, you must show the steps to the correct answer
clearly and cleanly, not just the final answer.)
SF/$ = 0.9154 Y/$ = 100.26
a. What is the Y/SF exchange rate?
b. What is the SF/Y exchange rate?
c. If the SF appreciated by 10% what would then new rate be?
d. If the Yen depreciated by 25% relative to the original exchange rate (i.e. answer to part a, or
part b), what would the new rate be?
5. In recent months, several emerging markets such as India, Indonesia, Brazil and to a lesser extent
Brazil have seen a sharp depreciation of their currencies against the US dollar, as well as an increase
in volatility of their markets. In orde ...
Globalization allows companies and countries to optimize resources globally and cater to global
customers. Toyota is provided as an example of a highly globalized company, with one-third of its global
output coming from affiliates in 25 countries. Key indicators of globalization for a company include the
international dispersion of sales, assets, intra-firm trade, and technology flows. Globalization for
companies normally occurs through six stages - from initially establishing a presence in one overseas
market to eventually emerging as a truly global enterprise with global production, investments, and
brand.
The document provides notes for an international business administration course. It outlines the recommended textbook and instructor, Dr. Sandeep Solanki. The first unit covers the concept of international trade, including an overview of factors affecting trade like inflation, competition, and foreign investment. Benefits of trade are greater choice and job creation. Dangers of trade dependency include economic turmoil in one nation harming others. Regional economic integration and its levels are also discussed.
Writing An Descriptive Essays - How To Write A DBeth Johnson
The document discusses Simon Luttichuy's still life painting that includes self-portraits of the artist. It argues that such still life paintings are not just about contemplating life and time passing, but also celebrate life, foreshadow death, illustrate self-awareness, and portray the artist in a god-like state by entangling their identity within the painting. The painting contains portraits of the artist, sculptures, and objects like a bone and palette that contemplate death and time passing.
This document discusses globalization and international business. It defines globalization as the trend toward greater economic, cultural, political and technological interdependence among national institutions and economies. It identifies two key drivers of globalization as regional trade agreements and technological innovation. The document also summarizes the debates around globalization, including its impacts on jobs, wages, labor standards, and national sovereignty. It describes different types of firms involved in international business, such as multinational corporations, small businesses, and born global firms.
This document provides an introduction to international business management. It defines international business as transactions that cross national borders, and defines globalization as the increasing integration of economies, markets, trade, and communications globally. The document discusses factors driving globalization like declining trade barriers and technological advances. It also outlines some advantages of international business like accessing new markets and diversifying risks. Finally, it introduces topics that will be covered in subsequent chapters, such as international trade, strategic management, and ethics in international business.
The document provides an overview of international business. It discusses how globalization and liberalization have increased the importance of international business. Key drivers include the rise of multinational companies, technological advances, reductions in transportation and communication costs, and increasing competition in domestic markets from foreign firms. International business allows companies to leverage experience, realize scale economies, better utilize resources, and develop global strategies to achieve higher profits by accessing markets abroad.
MD4099 Assessment 1 – Individual EssayDetails of assessmentAsAbramMartino96
This document outlines an assessment for an individual essay as part of an international management module. Students must write a 2,000 word essay discussing the impact of COVID-19 on international trade for one of several listed countries. They must address the country's trade relations, foreign direct investment flows, economic growth forecast, and policy responses. The essay should apply relevant economic principles and include an industry example, implications for globalization, and over 20 references. A sample extract demonstrates addressing some initial requirements but a full student response requires more depth, detail, and their own examples and analysis.
Ib0017 – international business environment and international lawsmumbahelp
This document provides information about obtaining fully solved Fall 2014 assignments. It lists the contact information to email or call for assistance, including the email address "help.mbaassignments@gmail.com" and phone number 08263069601. It then provides details of an assignment for the subject "International Business Environment and International Law", including 6 questions covering topics like factors affecting economic environment, relationship between law and international law, carriage of goods by sea, export cartels, intellectual property rights under TRIPS, and types of investment treaties. Students are instructed to answer all questions, with longer answers of around 400 words for 10 mark questions.
This document provides an overview of the contents of a textbook on international business management. It includes 5 chapters that cover topics such as: introduction to international business concepts; international trade and investment; international strategic management; production, marketing, finance, and human resources in global business; and conflict management and ethics. The introduction chapter defines key terms and discusses factors driving globalization, the international business environment, and the impact of globalization. Subsequent chapters cover issues related to international trade agreements, entry strategies, organizational structures, and challenges of operating globally.
I need a 125 word reply to each of the four following forum postings.docxtroutmanboris
I need a 125 word reply to each of the four following forum postings in a finance class (500 words total) You are responding to comments made by other students in the class. MUST BE ORIGINAL!
Forum #1
When an organization decides to engage in international financing activities, they also take on additional risk as well as opportunities. The main risks that are associated with businesses engaging in international finance include foreign exchange risk and political risk. These risks may sometimes make it difficult to maintain constant and reliable revenue. When an organization decides to engage in international financing activities, they also take on additional risk as well as opportunities. The main risks that are associated with businesses engaging in international finance include foreign exchange risk and political risk. These risks may sometimes make it difficult to maintain constant and reliable revenue. Foreign exchange risk occurs when the value of investment fluctuates due to changes in a currency's exchange rate. When a domestic currency appreciates against a foreign currency, profit or returns earned in the foreign country will decrease after being exchanged back to the domestic currency. Political risk transpires when a country's government unexpectedly changes its policies, which now negatively affect the foreign company. These policy changes can include such things as trade barriers, which serve to limit or prevent international trade. “Since 2010, one in ten of the countries surveyed have experienced a significant increase in the level of short-term political risk. These risks include governments asserting control over natural resources, regimes being ousted by popular uprisings and the expropriation of foreign investors' assets” (Brown, Sophle. 2013).
References
Brown, Sophle. Political instability on the rise. Dec 11, 2013. Retrieved from web:
http://www.cnn.com/2013/12/11/business/maplecroft-political-risk/
Forum #2
Multinational companies seem to be the standard for future business. They are typically more productive and pay their workers more than comparable locally owned businesses (Eun & Renick, 2015). With the many advantages that are available to multinationals it is no surprise that companies are shifting in this direction. However, all of the advantages do not come risk free as you may have expected. Two of the significant risks associated with multinationals and international financial management are foreign exchange risk and political risks.
Foreign exchange risk is what would likely be the first thing you would consider when thinking about international finance. Exchange rates fluctuate on a regular basis and can be somewhat unpredictable at times. This has been the case since the early 1970s when fixed exchange rates were abandoned (Eun & Renick, 2015). Exchange risk is the difference between the exchange rate at the moment a business deal is closed for a given amount and the exchange rate at the moment when .
Mba1014 global economic environment 200413Stephen Ong
This document discusses globalization and its impact on businesses. It begins with an introduction to globalization and defining it as the deepening interdependence between countries through increased cross-border trade and financial flows. It then provides statistics on major economies and discusses factors driving globalization like declining trade barriers and technological advances. The document also covers debates around globalization, how it affects companies, and challenges they face in the global marketplace.
International Trade and Policy- Introduction by Neeraj Bhandari (Surkhet Nepal)Neeraj Bhandari
This document provides an overview of an international trade and policy course. The 6-unit course covers topics like international trade theories, economic growth and trade, trade policies, and economic integration. It lists two textbooks for the course. It then discusses what international trade is, its importance for firms and nations, and how it has grown. It covers reasons firms engage in trade like expanding markets and lowering costs. It also discusses modes of international business operations and how economic events in one country can impact others due to increased interdependence. Finally, it lists some international economic problems faced by different countries.
Country X has a comparative advantage in food production while Country Y has a comparative advantage in textile production. If Country X shifts resources to focus on food and Country Y shifts to focus on textiles, total production will increase for both goods. Through free trade where Country X exports food for Country Y's textiles, both countries can increase their consumption beyond what is possible through domestic production alone.
This document provides an outline for an international finance course. It includes 7 chapters that cover topics such as foreign exchange markets, international capital markets, time value of money, strategic decision making, international taxation, and international financial management. The course will be taught through traditional classroom teaching and multimedia presentations. Students will be evaluated based on attendance, assignments, classwork, and a final exam.
Is Foreign Ownership Beneficial for Creating Value -Seminar in Finance Paper (1)Osama Elaish
This document summarizes a literature review on whether foreign ownership is beneficial for creating value. It examines studies from both developed and emerging markets. The review finds that while there is generally a positive relationship between foreign ownership and value creation, the impact depends on factors like the level of development of the home and host countries. Foreign ownership seems to create more value when firms move between similar markets, like both being developed or emerging, compared to moving between different types of markets. The review faces some limitations and recommends further research on the topic.
This document outlines the syllabus, scheme, and regulations for a two-year Diploma in Pharmacy program. Some key details include:
- The duration of the course is two academic years with at least 180 working days per year plus 500 hours of practical training over 3 months.
- To be admitted, candidates must have passed science subjects at the intermediate level or equivalent exam. Admission is based on a pre-pharmacy test.
- To appear for exams, candidates must have attended at least 75% of classes. Some attendance relaxation may be granted.
- The course includes subjects like Pharmaceutics, Pharmaceutical Chemistry, Pharmacognosy, and more. Exams include theory and
This document provides information on accounting conventions and standards. It begins by explaining key accounting concepts and conventions such as consistency, full disclosure, materiality, and conservatism. It notes that accounting conventions provide uniform rules for recording transactions. The document then discusses Generally Accepted Accounting Principles (GAAP) and the various accounting standards issued by the Institute of Chartered Accountants of India to standardize practices. It provides examples of some common accounting standards such as those related to cash flows, inventories, depreciation, and revenue recognition.
This document describes the development of a web-based strategic planning application to help educational institutes improve their quality services. The application allows stakeholders to provide feedback, conduct SWOT analyses, identify thrust areas and goals, and develop action plans. It aims to automate the strategic planning process and reduce errors. The application was developed using Microsoft technologies like Visual Studio .NET and SQL Server. It will guide users through the strategic planning steps and provide strategic reports online for institutes.
This document lists 17 books related to banking, finance, and financial services. The books cover topics such as principles and practices of banking, merchant banking and financial services, financial institutions and markets, Indian financial services, credit appraisal and risk analysis, banking theory and practice, banking and financial systems, Indian financial system and development, new trends in banking, nature and problems of commercial banking in India, and manuals and publications from organizations like RBI, IIBF, and Taxmans.
1. The document discusses 6 benefits besides salary that can be negotiated when accepting a new job offer, including an earlier salary review, better equipment and software, flex-time and telecommuting, an expense allowance, share options, and professional development courses.
2. While an earlier salary review or flex-time may be possible to negotiate, the likelihood depends on factors like the employee's replaceability and the company's culture. Equipment requests also need to be reasonable and not come across as snobbish or arrogant.
3. Benefits like an expense allowance, share options, or professional development funding are more standard negotiations for certain industries or jobs that require travel, but research on the company is important to understand what
The document provides general instructions for filling Excel sheets to import faculty, technical staff, admin and other staff, and student data. It includes instructions to install Microsoft Office 2007, use the latest Excel sheet uploaded to the site, enable ActiveX controls, save files to the D drive with specific file names, enter mandatory and dropdown data only, validate data, include a sample row, and check the log sheet after importing. The instructions apply to importing each type of data record and note that every student admitted must be entered only once.
This document provides an overview and index of the All India Council for Technical Education (AICTE) Approval Process Handbook for 2013-2014. It outlines the statutory provisions and regulations governing technical education in India. The handbook covers the approval process for setting up new institutions, extending approvals, making changes to courses/intake, and collaborations with foreign universities. It provides definitions, norms for infrastructure, faculty, and programs. The goal is to foster high-quality technical education and bring the system on par with international standards through transparent, tech-enabled processes and accountability.
The document outlines 15 steps to generate an application report for 2013-2014 in two parts. It involves navigating to the institute details tab, clicking the reports icon, selecting the relevant application report, submitting it, saving the file locally, and sometimes needing to access it through the my BI publisher reports page if the initial window does not respond. The process is similar for both parts of the application report.
1) The document contains affidavits from a student and their parent/guardian regarding the student's admission to an institution and awareness of the regulations against ragging.
2) Both affidavits acknowledge having received and read the regulations against ragging and affirm that the student/ward will not engage in any acts of ragging or abetting of ragging.
3) They also acknowledge the penalties for any involvement in ragging and declare that the student/ward has not previously been expelled from any institution for ragging.
This document provides the academic calendar for the second and fourth semesters of the MBA program at Jayawant Institute of Computer Applications for the 2012-2013 year. It includes the dates for commencement of classes, mid-term tests, end of classroom teaching, preliminary examinations, and tentative university examination dates. It also lists the subjects and dates for the mid-term tests and preliminary examinations for both semesters. Finally, it provides a list of holidays during the period.
The All India Council for Technical Education (AICTE) is announcing an additional Common Management Admission Test (CMAT) for the 2013-2014 academic year to accommodate candidates who could not take the earlier CMAT. Students can register online from March 10th to April 10th, 2013 to take the computer-based test between May 19-22, 2013 in various cities. Test results will be declared on June 1st, 2013. Scores from the additional CMAT can be used for admission in AICTE approved institutes and university programs.
This document is a deficiency report generated on January 25, 2013 for Akemi Business School, an existing institute applying for approval. It summarizes deficiencies found in the institute's faculty, infrastructure, anti-ragging measures, computational facilities, library facilities, and other areas based on data uploaded by the institute. The report also provides information on the institute's principal, courses offered, student intake and other details. At the end, the principal is required to declare that he is aware of the deficiencies pointed out in the report based on the institute's submitted data.
The document discusses sexual harassment guidelines established by the Supreme Court of India in 1997. It defines sexual harassment and provides examples. It then describes the Cell Against Harassment and Atrocities Against Women established at the University of Pune to address sexual harassment complaints according to Supreme Court guidelines. The Cell aims to provide support for complainants, raise awareness, and ensure a respectful campus environment through workshops, counseling, and a formal complaint procedure.
This document contains 20 word problems or riddles with multiple choice answers. The problems cover a range of math, logic, and reasoning skills. They would require carefully reading the details provided and applying logical steps to determine the correct answer among the options given.
This document is an application form for recognition as a post-graduate teacher by Solapur University in Solapur, India. It requests information such as the applicant's name, age, address, college, subject and type of recognition sought. It asks for details of academic qualifications, teaching experience at undergraduate and post-graduate levels, research publications, recognition from other universities, and the number of students guided to higher degrees. The principal of the applicant's college must verify and forward the application to the registrar of Solapur University. An expert committee will assess the applicant's interest, pursuit and environment for higher studies based on submitted papers, membership of academic bodies, research work and teaching/administrative loads.
5. However, rapid growth in the value of exports does not necessarily indicate
that trade is becoming more important. Instead, one needs to look at the
share of traded goods in relation to the size of the world economy. The
adjoining figure shows world exports as a percentage of world GDP for the
years 1970 to 2005. It shows a steady increase in trade as a share of the size
of the world economy. World exports grew from just over 10% of GDP in
1970 to almost 30% by 2005. Thus, trade is not only rising rapidly in
absolute terms, it is becoming relatively more important too.
One other indicator of world interconnectedness can be seen in changes in
the amount of foreign direct investment (FDI). FDI is foreign ownership of
productive activities and thus is another way in which foreign economic
influence can affect a country. The adjoining figure shows the stock, or the
sum total value, of FDI around the world taken as a percentage of world
GDP between 1980 and 2004. It gives an indication of the importance of
foreign ownership and influence around the world. As can be seen, the
share of FDI has grown dramatically from around 5% of world GDP in
1980 to over 20% of GDP just 25 years later.
6. The growth of international trade and investment has been stimulated
partly by the steady decline of trade barriers since the Great Depression of
the 1930s. In the post World War II era the General Agreement on Tariffs
and Trade, or GATT, was an agreement that prompted regular negotiations
among a growing body of members to reduce tariffs (import taxes) on
imported goods on a reciprocal basis. During each of these regular
negotiations, (eight of these rounds were completed between 1948 and
1994), countries promised to reduce their tariffs on imports in exchange for
concessions, or tariffs reductions, by other GATT members. When the
most recent completed round was finished in 1994, the member countries
succeeded in extending the agreement to include liberalization promises in
a much larger sphere of influence. Now countries would not only lower
tariffs on goods trade, but would begin to liberalize agriculture and services
market. They would eliminate the many quota systems - like the multi-fiber
agreement in clothing - that had sprouted up in previous decades. And they
would agree to adhere to certain minimum standards to protect intellectual
property rights such as patents, trademarks and copyrights. The WTO was
created to manage this system of new agreements, to provide a forum for
regular discussion of trade matters and to implement a well-defined process
for settling trade disputes that might arise among countries.
As of 2006, 149 countries were members of the WTO "trade liberalization
club" and many more countries were still negotiating entry. As the club
grows to include more members, and if the latest round of trade
liberalization discussion called the Doha round concludes with an
agreement, world markets will become increasingly open to trade and
investment. [Note: the Doha round of discussions was begun in 2001 and
remains uncompleted as of 2006]
Another international push for trade liberalization has come in the form of
regional free trade agreements. Over 200 regional trade agreements around
the world have been notified, or announced, to the WTO. Many countries
26. Special Tariff Classifications in the US
A, A*, A+ Generalized System of Preferences (GSP) (More info: page 11)
B Automotive Products Trade Act (More info: page 21)
CA, MX North American FTA (NAFTA)
Canada and Mexico (More info: page 31)
D African Growth and Opportunity Act (More info: page 170)
E Carribean Basin Economic Recovery Act (More info: page 23)
IL US-Israel FTA (More info: page 26)
J, J*, J+ Andean Trade Preference Act (More info: page 29)
R US-Carribean Trade Partnership Act (More info: page 171)
JO US-Jordan FTA (More info: page 172)
SG US-Singapore FTA (More info: page 176)
CL US-Chile FTA (More info: page 267)
The products presented below were selected to demonstrate several noteworthy features
of US trade policy. The WTO reports in the 2004 US Trade Policy Review that most
goods enter the US either duty free or with very low tariffs. Coffee and FAX machines
are two goods, shown below, representative of the many goods that enter duty free. The
average MFN tariff in the US in 2002 was about 5% although for agricultural goods the
rate was almost twice as high. About 7% of US tariffs exceed 15%, these mostly on
sensitive products such as peanuts, dairy, footwear, textiles and clothing. The trade-
weighted average tariff in the US was only about 1.5% in 2003.
One interesting feature of the tariff schedule is the degree of specificity of the products in
the HTS schedule. Besides product type, categories are divided according to weight, size
or the time of year. Note especially the description of ceramic tableware and bicycles.
Tariffs vary according to time of entry, as with cauliflower, grapefruit and grapes. This
reflects the harvest season for those product in the US. When the tariff is low, that
product is out of season in the US. Higher tariffs are in place when US output in the
product rises.
Notice the tariffs on cauliflower and broccoli. They are lower if the vegetables are
unprocessed. If the product is cut or sliced before arriving in the US, the tariff rises to
14%. This reflects a case of tariff escalation. Tariff escalation means charging a higher
tariff the greater the degree of processing for a product. This is a common practice
among many developed countries and serves to protect domestic processing industries.
Developing countries complain that these practices impede their development by
preventing them from competing in more advanced industries. Consequently, tariff
escalation is a common topic of discussion during trade liberalization talks.
27. Tariffs rates also vary with different components of the same product, as with watches.
Note also that watches have both specific tariffs and ad valorem tariffs applied.
Notice that tariffs on cars in the US is 2.5%, but the tariff on truck imports is 10 times
that rate at 25%. The truck tariff dates back to 1963 and is sometimes referred to as the
"chicken tax." It was implemented, primarily to affect Volkswagon, in retaliation for
West Germany's high tariff on chicken imports from the US. Today, Canada and Mexico
are exempt from the tariff due to NAFTA and Australia will also be exempt with the new
US-Australia FTA. The truck tax is set to be a contentious issue in current US-Thailand
FTA discussions.
The tariff rates themselves are typically set to several significant digits. One has to
wonder why the US charges 4.4% on golf clubs rather than an even 4 or 5%. Much
worse is the tariff rate on cane sugar with six significant digits.
The special tariff rates are often labeled "Free," meaning thise goods enter duty-free from
that group of countries. Note that Chile and Singapore sometimes have tariff rates in
between the MFN rate and zero. This reflects the phase in process of the free trade area.
Most FTAs include a 5-15 year phase in period during which time tariffs are reduced
annually towards zero.
Selected Tariffs in the US 2004
HTS Code Description MFN/NTR Special Tariff
Tariff
0704.10.20 Cauliflower, Broccoli 2.5% (June 5- Free (A,CA,
Oct 25) CL,E, IL,J,JO,
MX,SG)
0704.10.40 10% (Other,
not reduced in Free (A,CA,
size) CL,E, IL,J,JO,
MX)
0704.10.60 7.5% (SG)
14% (Cut or
sliced) Free (A,CA,
CL,E, IL,J,JO,
MX)
12.2% (SG)
Non-MFN:
50%
28. 0805.40.40 Grapefruit 1.9¢/kg (Aug- Free (CA,D,E,
Sep) IL, J,JO,MX,
SG)
1.6¢/kg (CL)
0805.40.60 1.5¢/kg (Oct)
Free (CA,D,E,
IL, J,JO,MX,
SG)
0805.40.80 2.5¢/kg (Nov- 1.1¢/kg (CL)
Jul)
Free (CA,D,E,
IL, J,JO,MX)
2.2¢/kg (CL,
SG)
Non-MFN:
3.3¢/kg
0806.10.20 Grapes, fresh $1.13/m3 (Feb Free (A+,CA,
15-Mar 31) CL,D,E, IL,J,
0806.10.40 JO,MX,SG)
Free (Apr 1-
0806.10.60 Jun 30) Non-MFN:
$8.83/m3
$1.80/m3 (any
other time)
6912.00.45 Ceramic tableware; plates not 4.5% Free (A+,CA,
over 22.9 cm in maximum CL,D,E, J,JO,
diameter and valued over $6 MX,SG)
per dozen; plates over 22.9 but
not over 27.9 cm in maximum
diameter and valued over $8.50
per dozen Non-MFN:
55%
7116.10.25 Cultured Pearls 5.5% Free (A,CA,
CL,L,J, JO,
MX)
4.1% (SG)
Non-MFN:
110%
29. 8703.2x.00 Motor cars, principally 2.5% Free (A+,B,
designed for the transport of CA,CL,D, E,
persons, of all cylinder IL,J,JO,MX,
capacities SG)
Non-MFN:
10%
8704.22.50 Motor vehicles for the 25% Free (A+,B,
transport of goods (i.e., trucks), CA,CL,D, E,
gross vehicle weight exceeding IL,J,MX)
5 metric tons but less than 20
metric tons 15% (JO)
22.5% (SG)
Non-MFN:
25%
8712.00.15 Bicycles having both wheels 11% Free (A+,CA,
not exceeding 63.5 cm in CL,D,E, IL,J,
diameter MX)
2.2% (JO)
9.6% (SG)
Non-MFN:
30%
1701.11.05 Cane sugar: 1.4606¢/kg Free (A*,CA,
less .020668¢/ CL,E*,IL, J,JO,
kg for each MX,SG)
degree under
100 degrees Non-MFN:
but not less 4.3817¢/kg
than .943854¢/ less .0622005¢/
kg kg for each
degree under
100 degrees
but not less
than
2.831562¢/kg
30. 6404.11.20 Sports footwear; tennis shoes, 10.5% Free (CA,CL,
basket-ball shoes, gym shoes, D,IL,J+, MX,
training shoes and the like: R)
Having uppers of which over
50% of the external surface 2.1% (JO)
area is leather.
9.1% (SG)
Non-MFN:
35%
9506.31.00 Golf clubs 4.4% Free (A,CA,
CL,E,IL, J,JO,
MX,SG)
Non-MFN:
30%
9101.11.40 Wristwatches 51¢ each + 38.2¢ each +
6.25% on case 4.6% on case
and strap + and strap +
5.3% on 3.9% on
battery battery (CL,
SG)
Free (CA,D,E,
IL,J, J+,JO,
MX,R
8517.21.00 Fax machines Free Non-MFN:
35%
0901.21.00 Coffee, non-decaffeinated Free Non-MFN:
Free
0902.10.10 Tea, green tea, flavored 6.4% Free (A,CA,
CL,E,IL, J,JO,
MX)
4.8% (SG)
Non-MFN:
20%
One thing to think about while reviewing this tariff schedule is the administrative cost of
monitoring and taxing imported goods. Not only does the customs service incur costs to
44. Mexico (1997)
13.2%
Overall
4.2%
With US
Chile (1997) 11.0%
El Salvador (1995) 10.1%
Cyprus (1996)
16.4%
Overall
7.2%
with EU
37.6%
Agriculture
Morocco (1995) 23.5%
Benin (1997) 13.0%
Zambia (1996) 13.6%
Malaysia (1997) 8.1%
Thailand (1994) 30.0%
Problems Using Average Tariffs as a Measure of Protection
The first problem with using average tariffs as a measure of protection in a country is
that there are several different ways to calculate an average tariff rate and each method
can give a very different impression about the level of protection.
Most of the tariffs above are calculated as a simple average. To calculate this rate, one
simply adds up all of the tariff rates and divides by the number of import categories. One
problem with this method arises if a country has most of its trade in a few categories with
zero tariffs, but has high tariffs in many import categories in which it would never find
advantageous to import. In this case the average tariff may overstate the degree of
protection in the economy.
This problem can be avoided, to a certain extent, if one calculates the trade-weighted
average tariff. This measure weights each tariff by the share of total imports in that
import category. Thus, if a country has most of its imports in a category with very low
tariffs, but has many import categories with high tariffs but virtually no imports, then the
trade-weighted average tariff would indicate a low level of protection. The standard way
of calculating this tariff rate is to divide total tariff revenue by the total value of imports.
Since this data is regularly reported by many countries this is a common way to report
average tariffs.
However, the trade-weighted average tariff is not without flaws. As an example, suppose
a country has relatively little trade because it has prohibitive tariffs (i.e. tariffs set so high
45. as to eliminate imports) in many import categories. If it has some trade in a few import
categories with relatively low tariffs, then the trade-weighted average tariff would be
relatively low. After all, there would be no tariff revenue in the categories with
prohibitive tariffs. In this case, a low average tariff could be reported for a highly
protectionist country. Note also that, in this case, the simple average tariff would register
a higher average tariff and might be a better indicator of the level of protection in the
economy.
Of course the best way to overstate the degree of protection is to use the average tariff
rate on dutiable imports. This alternative measure, which is sometimes reported, only
considers categories in which a tariff is actually levied and ignores all categories in
which the tariff is set to zero. Since many countries today have many categories of goods
with zero tariffs applied, this measure would give a higher estimate of average tariffs
than most of the other measures.(1)
The second major problem with using average tariff rates to measure the degree of
protection is that tariffs are not the only trade policy used by countries. Countries also
implement quotas, import licenses, voluntary export restraints, export taxes, export
subsidies, government procurement policies, domestic content rules, and much more. In
addition, there are a variety of domestic regulations which, for large economies at least,
can and do have an impact on trade flows. None of these regulations, restrictions or
impediments to trade, affecting both imports and exports, would be captured using any of
the average tariff measures. Nevertheless these non-tariff barriers can have a much
greater effect upon trade flows than tariffs themselves.
The Ideal Measure of Protectionism
Ideally, what we would like to measure is the degree to which a government's policies
(both domestic and trade policies) affect the flow of goods and services (on both the
import and export side) between itself and the rest of the world. Thus, we might imagine
an index of protectionism (IP) defined as follows:
Where the numerator represents the sum of all exports and imports across all N trade
categories given the current set of trade policies, and the denominator represents the
sum of all exports and imports that would obtain if the government employed a set of
domestic policies that had no impact on trade of goods and services with the rest of the
world. If IP = 1, it would indicate that current government policies are completely non-
restrictive and the economy could be characterized as being in a pure state of "free
trade." If IP = 0, then government policies would be so restrictive as to force the
economy into a state of isolation or autarky.
If we could calculate and compare the index across many countries, then we could say
that countries with a smaller value were more protectionist than countries with a higher