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InstitutoSuperiordeContabilidadeeAdministraodoPorto

TradeRestrictionsandTradePolicy
Firms,Location,andDistance

Students:

CONTENT:

TRADE RESTRICTIONS AND TRADE POLICY

FIRMS, LOCATION, AND DISTANCE

Trade policy or Commercial policy


Trade restrictions (advantages and disadvantages)
Types of trade barriers and restrictions
Regional Trade Agreements (RTAs).
Imports of Romania
Imports of Poland
Transport costs
Gravity model
Distance and types of distance
Porters Diamond model
Exports of Romania
Exports of Poland

USED RESOURCES

TRADE RESTRICTIONS AND TRADE POLICY


1.TradePolicyorCommercialPolicy
Tradepolicywhichisalsoknownascommercialpolicy,canbedefinedas
lawsrelatedtotheexchangeofgoodsorservicesinvolvedininternational
tradeincludingtaxes,subsidies,andimport/exportregulations

Freetradearea

TRADE RESTRICTIONS AND TRADE POLICY


2.TradeRestrictions(AdvantagesandDisadvantages)

TRADE RESTRICTIONS AND TRADE POLICY


2.TradeRestrictions(AdvantagesandDisadvantages)

TRADE RESTRICTIONS AND TRADE POLICY


3.TypesofTradebarriersandrestrictions
Voluntaryexportrestraint
Embargo
Quotas
Asubsidy
Tariffs

TRADE RESTRICTIONS AND TRADE POLICY


4.RegionalTradeAgreements
Besidesthefreegoodsandfactormovements,membercountriesalsoadoptcommonmacroeconomicpolicies.
Ex:EuropeanUnion

Economic Union

TRADE RESTRICTIONS AND TRADE POLICY


5.RomanianImports

TRADE RESTRICTIONS AND TRADE POLICY


5.RomanianImports

TRADE RESTRICTIONS AND TRADE POLICY


5.RomanianImportsbycountries:

TRADE RESTRICTIONS AND TRADE POLICY


6.ImportofPoland

TRADE RESTRICTIONS AND TRADE POLICY


7.RomaniaImportsvs.PolandImports

FIRMS, LOCATION, AND DISTANCE


2.Transportcosts
Maritime transport costs

FIRMS, LOCATION, AND DISTANCE


2.Gravity model

Gravity model is a very powerful model that relates


aggregate trade and investment flows to distance. In
comparison standard trade theory to Gravity model, in
standard trade theory countries are dimensionless points in
space and exact location of those countries doesnt matter,
in Gravity model position does matter.

FIRMS, LOCATION, AND DISTANCE


3.Distance and types of distance
Geographic distance

FIRMS, LOCATION, AND DISTANCE


4.Porters Diamond model
A model that attempts to explain the competitive
advantage some nations or groups have due to certain factors
available to them.
The Porter Diamond is a model that helps analyze and improve a
nation's role in a globally competitive field.
The model was developed by Michael Porter, who is recognized as
an authority on company strategy and competition; it is a more
proactive version of economic theories that quantify comparative
advantages for countries or regions.

FIRMS, LOCATION, AND DISTANCE


4.ExportsofPoland

1.Machines,engines,pumps:US$27.8billion(12.9%oftotalexports)

TRADE RESTRICTIONS AND TRADE POLICY


5.RomanianExports:

TRADE RESTRICTIONS AND TRADE POLICY


5.RomanianExports:

TRADE RESTRICTIONS AND TRADE POLICY


5.RomanianExportsbycountries:

TRADE RESTRICTIONS AND TRADE POLICY


5.RomanianExportsvs.PolandExports: