16. Способы регулирования торговли. Экономические санкции. Торговая война сша и ес. Причины, возможности выхода из кризиса.

International trade is the exchange of goods and services btw diff countries. Depending on what country produces and needs, it can export (send goods to another country) and import (bring in goods from another country). Governments can control int trade by such measures as:

Tariffs=duties – a tax on imported goods

Quotas- maximum quantity of a product allowed into country.

These measures- protectionist, they rise the price of imported goods to protect domestically produced goods.

Dumping – exported goods are sold at less than in the home market or for less than they cost to produce. In order to gain market share, Exporter has comparative advantage in producing these goods not sold at below price

Subsidies – a form of financial assistance paid to a business or economic sector

Government guarantees farmers higher price they will normally get (in EU)

The balance of trade – difference between total earnings from all exports and total expenditure on all imports

Trade deficit - importing more than is exported

Trade surplus – exporting more than is imported (favorable balance)

Visible import/export – trade in raw materials and goods (US – merchandise)

Invisible import/export –cervices- banking, insurance,

Globalization – the tendency of the world to function as one unit

World Trade Organization

• 1994 – the General Agreement on Tariffs and Trade

• Aim – to maximize international trade AND to minimize the favouring of domestic industries

• Laisser-faire= deregulation= policy of the government not to intervene in business, open boarders

Trading blocks with no trade barriers – single market:

• Eliminating the tariffs walls and customs duties

• European Union

• NAFTA – North American Free Trade Agreement

• ASEAN – Association of Southeast Asian Nations

• Mercosur – Southern Common Market

Economic sanctions are domestic penalties applied by one country (or group of countries) on another for a variety of reasons. Economic sanctions include, but are not limited to, tariffs, trade barriers, import duties, and import or export quotas. The most famous example of an economic sanction is the fifty-year-old United States embargo against Cuba.

Economic sanctions are not always imposed because of economic circumstances.

Trade war

Euro-American relations are primarily concerned with trade policy. The two together represent 60% of global GDP, 33% of world trade in goods and 42% of world trade in services. The growth of the EU's economic power has led to a number of trade conflicts between the two powers; although both are dependent upon the other's economic market and disputes affect only 2% of trade.

The most well- known of these conflicts is so named Banana War. The EU has a quota system that favors banana imports from former colonies in the Caribbean and Africa; US-based Dole and Chiquita won a decision from the World Trade Organization in 1997 that found the EU quotas unlawful. The US threatens more than $500 million in “cross-sanctions” against unrelated European exports from almost 20 product categories like plastics, sweet biscuits and cashmere. The threat was enough to damage not-banana-related industries. For example the price of a $1million order of cashmere included normal duties of $100.000, but with the sanctions it will rise to almost $800.000. There is no American cashmere to fill the gap, so it could force many companies into bankruptcy. Little wonder that absolutely different types of manufacturers hope sanctions can be avoided. But with serious issues of procedure and precedent on the line at WTO for both Washington and Brussels, negotiators were pessimistic on prospects of a compromise.

If we look into the history we’ll know that there have never been any successful sanctions. Iraq.