What are the traditional methods for countries to implement protectionism? What are some typical non-tariff barriers to trade? How can MNEs overcome host country protectionism?
What will be an ideal response?
Answer: The traditional methods for countries to implement protectionism are tariff and nontariff barriers.
Nontariff barriers, which restrict imports by something other than a financial cost, are often difficult to identify, because they are promulgated as health, safety, or sanitation requirements.
MNEs have only a very limited ability to overcome host country protectionism. However, MNEs do enthusiastically support efforts to reduce protectionism by joining together in regional markets. The best examples of regional markets are the European Union (EU), the North American Free Trade Association (NAFTA), and the Latin American Free Trade Association (MERCOSUR). Among the objectives of regional markets are elimination of internal trade barriers, such as tariffs and nontariff barriers, as well as the free movement of citizens for employment purposes. External trade barriers still exist.
You might also like to view...
Transaction cost economics (TCE) theory suggests that firms should outsource specific non?core IT assets
Indicate whether the statement is true or false
Land Corporation reported the following:
Which of the following is included in the entry to record the corporation's purchase of 40,000 shares of its common stock for $12.00 per share?
A) Treasury Stock—Common is debited for $480,000.
B) Paid-In Capital from Treasury Stock Transactions is credited for $135,000.
C) Retained Earnings is debited for $480,000.
D) Common Stock—$5 Par Value is credited for $200,000.
The U.S. avoids trade barriers on imports in support of free trade principles.
Answer the following statement true (T) or false (F)
Retailers offer value -added services to both manufacturers as well as customers
Indicate whether the statement is true or false