1. International Trade & Trade Policy Trade Facilitation  Effects of Trade: -Economies of scale. -Market and business risk diversification. -Strengthening of competitive capabilities. Trade Barriers

2. Facilitators of International Trade International Trade and Economic Development Organizations Government Organizations Other Institutions and Procedures Facilitating International Trade

3. International Trade/Development Organizations World Trade Organization International Monetary Fund (IMF) Development Banks – e.g., World Bank United Nations Organizations

4. Government Organizations Facilitating International Trade United States Agencies  US Agency for International Development (USAID)  US Department of Commerce  Export-Import Bank of the United States  State and Local Government Agencies  Department of State  Small Business Administration  Department of Agriculture

5. Non-government Organizations that Facilitate International Trade  Commercial banks  Export intermediaries  Chamber of commerce and trade associations  American chambers of commerce abroad  International trade consultants and other advisors

6. Other Institutions and Procedures Facilitating International Trade Trade Agreements: e.g., Free Trade Area of the Americas (FTAA) market access; investment; services; government procurement; dispute settlement; agriculture; intellectual property rights; subsidies, antidumping and countervailing duties; and competition policy. Economic Blocs: e.g., Mercosur – Southern Common Market Agreement

7. Barriers to International Trade: Boycotts, Embargos, Sanctions Boycotts  ban on all goods associated with a particular company and/or country Embargos  Prohibits all business deals with the target country; affects third parties Sanctions  Punitive trade restrictions applied by a country or group against another country for noncompliance

8. Other Trade Barriers Import Policies:  Tariffs - taxes/duties levied against imported goods.  Exchange Permits - due to rationing of host country currencies; permit allows exchange for U.S. $  Quotas - limits quantity of goods allowed in the host country  Import Licenses - like quota, but on a case-by-case basis Standards:  health, quality, safety, labeling, certification Other  Voluntary Agreements - reciprocal limits between 2 countries to avoid penalties  Other Restrictions - e.g.., language laws, product labels, religious conventions, etc..

9. Example: Honduras Trade Restrictions 15% tariff on finished goods Exchange Permit required Strict sanitary standards; Sanitary permit required Label law; labels must include sanitary registration number