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Free Trade, Trade Deficit, and Global/local thinking

1. If free trade is intended to benefit nations why do nations restrict trade? Cite examples of "healthy" trade barriers.

2. What is a trade deficit and a trade surplus? Why are they considered so important? What are some factors that impact the numbers? What do you think it means? Give examples

3. Describe "think global act local" as a business strategy. Give examples of when it works and when it may fail. How does this strategy impact your mode of market entry when going global?

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1. If free trade is intended to benefit nations why do nations restrict trade? Cite examples of "healthy" trade barriers.

Trade barriers that are helpful to a country range from those that protect an industry performing defense for a country to those that might be tariffs set up to protect a new industry. Controlling entry can lead to fewer possibilities of 'dumping' of products by another country. In any of these cases, barriers are used to protect the country. Other types of barrier will promote the imports of healthy products. Food stuffs can fall under this. Countries limit the type or when a food can be imported. Plants and animals also fall under this designation.

2. What is a trade deficit and a trade surplus? Why are they considered so important? What are some factors that impact the numbers? What do you think it means? Give examples

A trade deficit is when a country ...

Solution Summary

Free Trade, Trade Deficit, and Global/local thinking are examined.

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