© 2009 The McGraw-Hill Companies, Inc. All rights reserved. 6 McGraw-Hill Trade protectionism Two kinds of tariff –Protective –Revenue Import quota Embargo Non-tariff barriers –Keiretsu Trade Protection and Agreements

© 2009 The McGraw-Hill Companies, Inc. All rights reserved. 7 McGraw-Hill Trade Protection and Agreements The General Agreement on Tariffs and Trade and the WTO General Agreement on Tariffs and Trade (GATT) World Trade Organization (WTO) Common Markets European Union (EU) Mercosur

© 2009 The McGraw-Hill Companies, Inc. All rights reserved. 8 McGraw-Hill Trade Protection and Agreements Organization of the Petroleum Exporting Countries (OPEC) 12 member organization’s mission: –Coordinate & unify policies –Ensure price stability –Provide efficient & regular supply

© 2009 The McGraw-Hill Companies, Inc. All rights reserved. 9 McGraw-Hill North American Free Trade Agreement (NAFTA) Objectives –Eliminate trade barriers –Promote conditions of fair competition –Increase investment opportunities –Provide protection & enforcement –Establish framework Success and difficulties Trade Protection and Agreements