Understanding International Trade and Protectionism

International Trade

Exchange of goods and services between countries.

Exports

Selling goods and services to other countries.

Imports

Buying goods and services from other countries.

Balance of Payments

Exports minus imports; financial relationship metric.

Free Trade

International trade without government intervention.

Protectionism

Restricting trade to protect domestic industries.

Tariffs

Taxes on imported goods to raise prices.

Quotas

Limits on the quantity of imports allowed.

Trading Bloc

Group of countries with reduced trade barriers.

Single Market

Region allowing free movement of goods and services.

Specialisation

Focus on specific goods for efficiency and competitiveness.

Economies of Scale

Cost advantages from increased production levels.

Political Links

Improved relations through international trade.

Cultural Understanding

Enhanced knowledge of different cultures via trade.

Spread Risk

Diversifying markets to reduce business vulnerability.

Access to Resources

Obtaining materials and technologies from other countries.

Product Life Cycle

Stages of a product's market presence over time.

Seasonality

Variations in product demand based on seasons.

Domestic Employment

Protectionist measures aimed at preserving local jobs.

Infant Industries

New industries needing protection from foreign competition.

Externalities

Unintended consequences of economic activities on others.

Protectionist Measures

Strategies to restrict imports and protect domestic industries.

Tariffs

Taxes on imported goods, raising consumer prices.

Quotas

Limits on the volume of imports allowed.

Domestic Subsidies

Government payments to support local businesses.

Embargoes

Total bans on specific imported products.

Balance of Payments

Financial statement of a country's transactions.

Trading Blocs

Groups of countries trading freely with each other.

Preferential Trade Areas

Reduced trade barriers for selected goods among members.

Free Trade Areas

Elimination of trade barriers for all goods.

Customs Unions

Removal of internal trade barriers and common external tariffs.

Common Markets

Free movement of goods and factors of production.

Economic Unions

Combines customs union and common market features.

Russia Sanctions

Political measures affecting trade, e.g., on Syrian oil.

Health and Safety Inspections

Regulatory measures to ensure product safety.

Margaret Thatcher's View

Belief in limited protectionism for economic growth.

Donald Trump's Views

Advocated for protectionist policies to boost domestic jobs.

Specialisation

Focus on specific industries to enhance efficiency.

Political Measures

Actions taken by governments affecting trade dynamics.

Trade Liberalisation

Reduction of trade barriers to promote free trade.

Economic Climate

Current economic conditions influencing trade policies.

Squeeze on Domestic Industries

Pressure on local producers from foreign competition.

Cultural differences

Variations in customs affecting product acceptance.

Language barriers

Communication obstacles hindering international business.

Unintended meanings

Misinterpretations of marketing messages in different cultures.

Inappropriate translations

Errors in language leading to brand embarrassment.

Inappropriate branding

Marketing strategies unsuitable for target audiences.

Ansoff's matrix

Framework for assessing market growth strategies.

BRICS countries

Emerging markets: Brazil, Russia, India, China, South Africa.

Marketing budget

Allocated funds for promoting products effectively.

Domestic industries

Local businesses potentially harmed by international trade.

Trade bloc

Group of countries reducing trade barriers among members.

Cultural marketing

Tailoring promotions based on ethnic backgrounds.

Product adaptation

Modifying products to meet local preferences.

Market research

Gathering information to understand consumer needs.

Brand image

Public perception of a company's products.

Trade disadvantages

Negative impacts of international trade on local economies.

Subjective taste

Individual preferences influenced by culture and environment.

Marketing effectiveness

Success of promotional strategies in reaching consumers.

Cultural insight

Understanding diverse cultures for better business strategies.

Embarrassment from errors

Negative consequences of poor marketing translations.

Rebranding efforts

Strategies to recover from negative public perception.

International market challenges

Difficulties faced when entering new global markets.

International Trade

Buying and selling goods between countries.

Free Trade

Trade without barriers like tariffs or quotas.

Protectionism

Restraining trade through tariffs and quotas.

Tariffs

Taxes imposed on imported goods.

Quotas

Limits on the quantity of imports.

Trading Bloc

Group of countries reducing trade barriers among themselves.

Single Market

A unified market allowing free movement of goods.

Consumer Expectations

Desire for foreign goods based on global standards.

World Trade Organization (WTO)

International body promoting free trade globally.

Political Stability

Reduced risk of conflict through international trade.

Innovation

Development of new ideas driven by competition.

Containerisation

Use of standardized containers for efficient shipping.

Domestic Employment

Jobs preserved by limiting foreign imports.

Competitive Pressure

Market forces encouraging efficiency and innovation.

Subsidies

Government financial support to domestic industries.

Training Grants

Funds provided for workforce skill development.

Tax Concessions

Reduced taxes to support new industries.

Surpluses

Excess production available for trade.

Inward Investment

Foreign capital invested in domestic industries.

Up-skilling

Improving workforce skills through training.

Natural Resources

Raw materials available in different countries.

Human Resources

Labor force with varying skills across nations.

Cross-border deregulation

Facilitates easier international trade among nations.

Trading blocs

Groups of countries promoting trade among themselves.

European Union (EU)

Political and economic union of European countries.

North American Free Trade Agreement (NAFTA)

Trade agreement between the US, Canada, and Mexico.

Free trade

International trade without barriers like tariffs.

Dumping

Selling goods below cost to eliminate competition.

Monopoly profits

Excessive profits after eliminating competition.

Resource efficiency

Optimal use of resources to lower production costs.

Free trade area

Region with no tariffs or quotas on trade.

Product differentiation

Distinguishing products to attract consumers internationally.

Single market

Free movement of goods, services, and people.

Common external tariff

Unified tariff on imports for all members.

Protectionism

Government actions to restrict imports and protect domestic industries.

Quotas

Limits on the quantity of goods imported.

Tariffs

Taxes on imported goods to restrict imports.