2.  MUNICIPAL LEVEL;  PROVINCIAL/STATE LEVEL;  FEDERALLY/NATIONAL LEVEL;  INTERNATIONALLY (E.G., EUROPEAN UNION).

3.  CONTROL BUSINESS ENTRY INTO AN INDUSTRY;  SET EXPECTATIONS OF BUSINESS BEHAVIOUR;  REGULATE BUSINESS BEHAVIOUR;  INSURE THAT CUSTOMERS AND EMPLOYEES ARE PROTECTED AGAINEST UNFAIR BUSINESS PRACTICES.  SUCH LEGISLATION CAN BE SEEN AS RESTRICTIVE BY FORIEGN COMPANIES WISHING TO INVEST IN THE HOST COUNTRY.

4.  GENERAL AGREEMENT ON TARIFFS AND TRADE (GATT) COMMENCED MEETING IN 1948.  TWENTY THREE COUNTRIES (INCLUDING CANADA) SIGNED THE ORIGINAL AGREEMENT.  WAS ESTABLISHED TO SET SOME GROUND RULES FOR THE INTERNATIONAL CONDUCT OF TRADE.  IN 1995, GATT WAS REPLACED BY THE WORLD TRADE ORGANIZATION (WTO) WITH OVER 140 MEMBER COUNTRIES.

5.  LOWER/ELIMINATE TARIFFS;  ELIMINATE IMPORT QUOTAS, SUBSIDIES, AND UNFAIR TECHNICAL STANDARDS THAT COMPROMISE COMPETITION.  RECOGNIZE AND PROTECT PATENTS, COPYRIGHTS, TRADEMARKS, ETC;  ASSIST POORER MEMBER COUNTRIES IN CREATING TRADE POLICIES AND STIMULATING ECONOMIC GROWTH;  SETTLING DISPUTES BETWEEN MEMBER COUNTRIES.

6.  1) CREATE FREE TRADE ZONES:  THESE ARE DESIGNATED SREAS IN A COUNTRY (E.G., SEAPORTS, BORDERS) WHERE PARTS AND RAW MATERIALS CAN BE IMPORTED DUTY-FREE (AND ASSEMBLED, STORED, ETC). ONLY WHEN PRODUCT LEAVES THE ZONE MAY SOME DUTY BE PAID.  FREE TRADE ZONES MAY PROVIDE VERY CHEAP LABOUR WHICH ATTRACTS FORIEGN MANUFACTURERS TO THE ZONES.

7.  2) MOST FAVOURED NATION (MFN) STATUS: › MFN COUNTRIES ARE ENCOURAGED TO TRADE BY CHARGING LOWER TARIFFS. (E.G., CANADA-FRANCE)  3) FREE TRADE AGREEMENTS: › MEMBER COUNTRIES AGREE TO ELIMINATE (OVER TIME) DUTIES AND OTHER TRADE BARRIERS ON PRODUCTS/SERVICES (E.G., NAFTA)  4) ECONOMIC COMMUNITIES OR MARKETS OR UNIONS: › COUNTRIES COME TO-GETHER TO, IN ESSENSE, CREATE ONE “ECONOMIC COUNTRY”.

8.  EXPANDED TRADE OPPORTUNITIES;  REDUCED OR ELIMINATED TARIFFS;  LOWER PRICES FOR CONSUMERS;  EXPANDED EMPLOYMENT AND INVESTMENT OPPORTUNITIES.

9.  THESE COMMOM MARKETS ARE EXTENSIONS OF FREE TRADE AGREEMENT.  AN EXAMPLE IS THE EUROPEAN MARKET AND WITHIN THAT MARKET THE EUROPEAN UNION (WHICH HAVE THE COMMON EURODOLLAR).

10.  BY CREATING TRADE BARRIERS AND PRACTICING “PROTECTIONISM”.  THIS INCLUDES: › 1) TARIFFS/DUTIES: TAXES ON PRODUCTS ENTERING THE COUNTRY. THIS HAS THE IMPACT OF HIGHER PRICES FOR FORIEGN GOODS ALLOWING DOMESTIC COMPANIES TO BETTER COMPETE

11.  2) QUOTAS: › LIMIT THE AMOUNT OF A PRODUCT (EITHER DOLLAR OR QUANTITY LIMIT) THAT CAN ENTER THE COUNTRY.  3) BOYCOTTS: › ABSOLUTE RESTRICTION ON IMPORTING A PRODUCT (JAPAN BOYCOTTS IMPORTED RICE);

12.  4) LICENSING: › FORIEGN COMPANIES ARE REQUIRED TO HAVE A LICENSE TO OPERATE WHICH CAN BE WITHDRAWN AT ANY TIME.  5) SPECIAL REQUIREMENTS FOR FORIEGN IMPORTS: › EXTRA REQUIREMENTS ARE SPECIFIED FOR FORIEGN IMPORTS THAT ARE NOT FOR LOCAL PRODUCTS.

13.  3) ECONOMIC NATIONALISM: › SOME COUNTRIES RESTRICT FORIEGN OWNERSHIP OF LOCAL BUSINESSES AND PROPERTY. (MEXICO; THAILAND).  4) CIVIL UNREST AND WAR: › CREATES SOCIAL DISORDER, EXTREME INCOME UNEVENESS (E.G., RUSSIA, EGYPT) AND FREQUENT POLITICAL/MILITARY CHANGE.

14.  FORIEGN INVESTORS ARE LOOKING FOR COUNTRIES TO INVEST IN WITH LOW TAXES (E.G., IRELAND).

15.  TARIFFS/DUTIES;  EXCISE TAXES (ON SPECIAL PRODUCTS: ALCOHOL, TOBACCO, GASOLINE);  SALES TAXES (AT TIME OF PURCHASE);  PAYROLL RELATED TAXES TO WHICH BUSINESSES CONTRIBUTE (E.G., E.I, CPP, WORKER’S COMPENSION, ETC)  VALUE ADDED TAX (VAT): THIS IS A TAX APPLIED TO EACH STAGE AS A PRODUCT PROGRESSES FROM ITS RAW FORM TO THE FINISHED PRODUCT.  INCOME TAX BASED ON THE “ABILITY TO PAY.  CORPORATE TAXES WHICH IS A FIXED PERCENT (E.G., 15%).