Comprehensive Guide to Lobbying, International Trade, and Economic Systems

Lobbying

refers to communication with government officials, politicians, or political aides for the purpose of influencing legislative action

Lobbying spend there time doing what?

Time spent preparing and submitting oral proposals, testimony, or analyzing existing or proposed government legislation

Lobbying is conducted by who

lobbyist

People, organizations and business have the right to express what?

their concerns and views to the decision makers on issues that are important

Consultant lobbyists

paid to lobby on behalf of clients.

How often do consultant lobbyist file a return?

6 months

In-house Lobbyist

salaried employees of either corporations or non-profit organizations who lobby on behalf of their employer.

What does DFAIT stand for?

Canada's Department of Foreign Affairs and International Trade

The main job for DFAIT is to?

promote foreign trade

What is the purpose for a trade mission?

to send a group of government representatives and corporate executives to learn first hand about the market and meet important business/government leaders in person

An Embassy:

the office of a country's diplomatic representatives in the capital city of another country.

Diplomatic Mission =?

Embassy

Ambassador

the head of mission

High commission

name for head of mission but in Commonwealth countries

Both High Commissions and Ambassadors perform what?

the same functions and have the same status

Consular Mission:

the office of a country's consular representatives in another country, either in the capital city or in another significant city

Main task of consular representatives

to protect the interests of the nationals of their country

4 Different Levels of Consular Representatives:

Consulate-General, Consulate, Vice-Consulate, Consular Agency

Honorary Consulates DO NOT provide what?

the same services as a Diplomatic Mission

senior consular missions of other countries are called

Deputy High Commissions

Export Development Canada

A crown corporation dedicated in helping Canadian exporter companies of all sizes to succeed on the world stage

EDC Services

Services offered includes insurances, investments, trade credit insurance, performance-related guarantees, direct lending, etc

Trade Credit Insurance

Protects businesses from the risk of non-payment of customers, covering losses from events like customer insolvency or political risks

Policy Risk Insurance

Type of coverage that protects businesses and investors from financial losses resulting from government actions or political instability in a foreign country

American Version of EDC

Export-Import Bank of the United States

Economic Questions

What to produce, For who to produce, How to produce, prices of goods and services

Free Market

An economic system determined by free competition, in which businesses, consumers, and government act independently of one another, and market forces and self-interest determine what goods are created and sold

Command Market

An economic system in which the government controls all elements of the economy, including prices, wages and production

Mixed Economy

An economic system that sits between market and command economy, Usually a combination of both government intervention and private enterprise

Democratic:

a state governed by all eligible members of the population through elected representatives which is characterized by free and fair elections, the rule of law, free speech and press → some politicians may be more concerned with re-election

Autocracy:

a state governed by a single individual or small group of people with unlimited power which is characterized by strong military presence, controls all aspects of citizens' lives with zero influence on the government

Theocracy:

based on religion

Monarchy:

ruled by a king or queen pass through birth, with the level of power depending on the country

The most recent classification that was used was

Developed, Developing and Underdeveloped

The World Bank classifies by

income level (low, middle, upper and high)

The United Nations uses

the Human Development Index (HDI)

Heritage Foundation and Fraser Institute

use the Index of Economic Freedom

GDP:

measures the total production for an economy

CPI:

a way to measure inflation by looking at the cost of a set group of items and comparing them over the years

Unemployment rate:

how many people are willing and able to work, but can't find a job

Business Cycle

Recurring periods of increased and decreased economic activity

Recession (2 consecutive quarters of GDP):

the economy slows down and a decline in consumer purchasing, increase in unemployment and business contract close

Trough:

production and unemployment reach their lowest levels, businesses complete their recession and turns towards prosperity

Expansion:

the economy begins to grow again, employment, wages, production and profits expand

Peak:

top of the business cycle, economy stops expanding and starts contracting

Leading:

adjust before the economy experiences a change and predict where the economy is going

Lagging:

do not adjust until after the economy has experienced a change.

Coincident:

move in conjunction with the business cycle

Monetary Policy:

A set of decisions made by a country through it's central bank

Fiscal policy:

the way a government collects taxes and spends money (healthcare, defense, etc)

Ways the Government Impacts International Business

Establishing import and export laws, Setting tariffs, Maintaining membership in trade organization and negotiating trade agreements, Determining monetary policy, including currency exchange rates, Determining fiscal policy, including taxation laws, Building infrastructure, such as roads and sewer systems

The Government Establishes

Regulation that businesses must comply with, Trade offices, Government embassies, High commissions and consulates, Trade missions

Corporate Influence on Government

Contribute large amounds of political campaigns, Participate in trade missions with politicians, Pressure the government to change or adopt politics that will benefit businesses

Lobbying

the process through which companies influence government officials and persuade them to endorse public policy favourable to these groups

Globalization

The process where national and regional economies/culture have become more integrated through global communication technologies, foreign direct investment, international trade and the flow of money

Strategies for Globalization

Global Strategy, Multidomestic strategy, Transnational Strategy

Global Strategy

plan for operating within and into international markets to gain a competitive advantage. Priority on efficiency over cost.

Multidomestic strategy

try to maximize local responsiveness by customizing products for a specific country.

Transnational Strategy

finding a balance between global strategy and a local response

Trade Agreements

An enforceable treaty between two or more countries that addresses the movement of goods and services, eliminates trade barriers, establishes terms of trade and encourages foreign investments.

Bilateral trade:

aim to expand access between two markets and increase their economic growth

Multilateral Trade Agreement:

a commercial pact among three or more countries to regulate trade and lower barriers such as tariffs and quotas.

USMCA

The USA-Mexico-Canada Agreement

What did the USMCA replace?

replaced NAFTA

Wehn was USMCA signed?

signed July 1, 2020.

What is the main purpose of USMCA?

Modernizes trade between the three countries with new rules for digital trade, IP, labor, and environment. Supports balanced, reciprocal trade and high-paying jobs.

CPTPP

Comprehensive and Progressive Agreement for Trans-Pacific Partnership

How many countries are in the CPTPP?

11 member countries (including Canada, Australia, Japan, Mexico)

What is the purpose of the CPTPP?

Eliminates tariffs, reduces trade barriers, and creates a predictable market among member nations

CETA

Canada-European Union Comprehensive Economic and Trade Agreement

Who is involved in CETA?

Canada and the European Union

When was CETA signed?

October 30, 2016

Other Trade Agreements Canada Is Involved In

CUSMA (Canada-United States-Mexico Agreement), CKFTA (Canada-Korea Free Trade Agreement), CEPA (Canada-Indonesia Comprehensive Economic Partnership Agreement)

United Nations (5 Main Purposes)

Maintain international peace and security, Develop friendly relations among nations, Achieve international cooperation, Promote human rights: Serve as a center for harmonizing actions

Paris Agreement

Paris Agreement is an international climate change agreement signed in 2016

What did the Paris Agreement replace?

Replaced the Kyoto Protocol

What is the purpose of the paris agreement?

Aim to strengthen the global response to climate change

Trade Organizations

Groups established to help with the free flow of goods and services. They may be global in scope or national organizations created by individual governments to help domestic companies expand into international markets.

What is the WTO?

world trade organization

How many members does the WTO have?

164+ member countries; decisions made by consensus.

What are main functions for WTO?

Acts as a forum for trade negotiations and disputes, creates trade rules, supports free flow of goods/services, oversees patents via TRIPS.

When was APEC created and how many members does it have?

Created in 1989; includes 21 Pacific Rim economies.

What is APEC's main goal?

Aims for economic growth and prosperity in the Asia-Pacific region.

How does APEC operate?

Through voluntary cooperation, not treaties.

What are APEC focus areas?

Trade liberalization, business facilitation, technical/economic cooperation, climate, security, terrorism, regional integration.

What are some results of APEC's work?

Lower tariffs, increased exports, GDP growth from $16T to $20T.

What is the G7?

Group of seven major advanced economies: US, Canada, UK, France, Germany, Italy, Japan.

When was the G7 founded?

1975

What about Russia in G7?

Russia joined in 1998 (G8) but was suspended in 2014.

What topics does the G7 discuss?

Economic growth, trade, development, climate, terrorism, energy, crime.

What is the G7's future outlook?

Uncertain due to member disagreements and changing global power dynamics.

What is the G20?

Includes major established and emerging economies; formed after 1990s economic crises.

What does the G20 represent?

90% of global GNP, 80% of trade, 2/3 of world population.

What are its focus areas for the G20?

Economic growth, job creation, financial reform, reducing trade barriers.

What role did the G20 play in 2008?

Helped respond to the global financial crisis.

What initiative did the G20 launch in 2017?

G20 Africa Partnership addressing inequality.

Which countries make up BRICS?

Brazil, Russia, India, China, South Africa.

When did they first meet?

2009; South Africa joined in 2010.

Are they G20 members too in BRICS?

Yes, all are G20 members.

What are BRICS known for?

Rapid economic growth and rising influence in global trade.