117

CHAPTER

Formulation of National Trade Policies
After studying this chapter, students should be able to: > Present the major arguments in favor of and against government intervention in international trade. > Identify the advantages and disadvantages of adopting an industrial policy. > Analyze the role of domestic politics in formulating a nation’s international trade policies. > Describe the major tools countries use to restrict trade. > Specify the techniques nations use to promote international trade. > Explain how countries protect themselves against unfair trade practices. LECTURE OUTLINE OPENING CASE: Desmarais Is Tired of Being Dumped On The opening case illustrates the concept of dumping by exploring the actions of a Canadian company, Desmarais & Frere, that lost market share to its Asian counterparts that were dumping products in the Canadian marketplace. Key Points • Desmarais & Frere Ltd. is Canada’s largest producer of photo albums with selfadhesive pages. The company keeps its marketing costs low by marketing most of its output through 10 customers, including K-Mart and Zellers. • Desmarais had a strong market position, with some 50-90 percent of the Canadian market in the 1970s and 1980s. However, for 20 years the company has been plagued by import competition from low-priced photo albums produced in Asia. • Desmarais considered focusing on quality as a means of countering the competitive threat, but decided that this was not the answer since price is a major concern of its customers, and because packaging makes it difficult to determine product quality anyway.

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Desmarais believed that it was victimized by a practice known as dumping, whereby a foreign firm sells products outside its domestic market for prices below what it charges in its home market.

and the methods its “victims” can use to fight back. However. and Taiwan. and a fifth complaint in 1991 against Indonesia. and the United States. a third complaint in 1986 against China. What is dumping? Dumping occurs when a foreign firm sells products outside its domestic market for prices below what it charges in its home market. Production of photo albums will probably shift to another country that is not currently covered by the antidumping tax. However. and the Philippines. students can be asked to identify and find examples of other dumping cases. Malaysia. 2. and penalties were imposed accordingly. The chapter begins with a discussion of why governments intervene in the free flow of trade and then considers the various types of trade barriers and how they are used. Kong. the CIT’s penalties applied only to Japanese and Korean producers. CHAPTER SUMMARY Chapter Eight explores the issue of national trade policy. Until a “victim” has successfully launched complaints against all countries. Additional Case Application The issue of dumping is not limited to the photo album industry. a fourth complaint in 1987 against Singapore. After finding the foreign firms guilty of dumping. it was found that Desmarais was vulnerable to dumping by its foreign competitors. Why can dumping plague a firm (or industry) over a number of years? Dumping can plague a company (or industry) over time because even after a complaint is successfully filed. it was determined that dumping had indeed occurred. . The case was reviewed again in 1996. the trial for Desmarais is not over yet. Desmarais filed a second complaint with the CIT in 1985 against Hong. To see just how widespread the practice is. and once again. violators can simply move their operations to a country that is not covered by an antidumping tax. • Seeking relief from a falling market share. and thus did not solve Desmarais’ problem because production of photo albums shifted to other Asian locations.118 > Chapter 8 • Because Canadian law prohibits dumping. This information can then be used as a basis for further discussion of the types of industries in which dumping is likely to occur. in 1975 Desmarais petitioned the Canadian Import Tribunal (CIT) for relief from the low prices charged by Japanese and Korean producers. the practice will probably continue. • In each case. the CIT imposed an antidumping duty on the violating firms. Case Questions 1. Thailand. South Korea.

and guaranteed loan programs? • In the U. • The “level playing field” argument (whereby foreign firms and domestic businesses compete on equal terms) is often used to justify policies that restrict competition from foreign firms. .1 and 8.Formulation of National Trade Policies > 119 I. should a national government intervene to protect its domestic firms by taxing foreign goods entering the domestic market or constructing other barriers against imports? Second. • Maintenance of Existing Jobs. • Developing policies based on this argument can help a country develop economically. • The national defense argument is a popular one. • Strategic trade theory is based on the idea that a government can make its country better off if it adopts trade policies to ensure that a domestic firm captures the monopoly profits that arise from being one of the few firms in an industry. may be pressured to protect industries to avoid a potential job loss if companies are driven out of business by foreign competitors. however. and those that are awarded protection are usually reluctant to give it up. machinery. • Firms are interested in the debate because national trade policy decisions directly affect the size and profitability of foreign markets and investments. • The infant industry argument is based on the idea that some industries could thrive if they are protected from foreign competition during their infancy and adolescence.2 here. • The national defense argument for intervening in the market suggests that a nation must be self-sufficient in critical raw materials. Some countries. Free trade implies minimal government influence on the exporting and importing decisions of private firms and individuals. First. and technology. and one that has been used to protect a variety of industries ranging from electronics to steel. Industry-Level Trade Arguments Teaching Note: It is useful to review the ideas of Adam Smith regarding free trade (see Chapter 3) before proceeding with the discussion of why governments intervene in the free flow of goods between nations. industries are often selected for protection on a political basis. The text provides the example of the restrictions Japan puts on imported rice. Use Figures 8. The text provides an example of the theory using Framatome and Mitsubishi. the debate has centered on the question of whether the government should promote free trade or fair trade. As the text mentions. and the degree to which firms are threatened by foreign imports in their dominant markets.. forcing the country to become selfsufficient. particularly high-wage ones. should a government help domestic firms increase their foreign sales through export subsidies. Fair trade (also called managed trade) suggests active intervention by the national government to ensure that exports receive an equitable share of foreign markets and that imports into the country are controlled to minimize losses of jobs and market share in specific industries. government-to-government negotiations. Japan has been very successful at nurturing new industries through various national policies.S. or else be vulnerable to threats from other countries. RATIONALES FOR TRADE INTERVENTION • There are two basic issues to consider when developing a national trade policy.

• Economic Development Programs. Discuss Venturing Abroad: Jumbo Battle over Jumbo Jets This Box discusses strategic trade theory using the aircraft industry and the ongoing competition between Boeing and Airbus. The policies are formulated based on the needs of the national economy. These broad national policies are then followed by specific industry policies. • Some countries will follow an export-promotion strategy (see Chapter 2) as a means of achieving higher levels of economic development. and Brazil after World War II. the focus of broad national policies is economic development. The text notes. • An import-substitution strategy encourages the growth of domestic manufacturing industries through the erection of high barriers to imported goods. and thus did not formally adopt an industrial policy. The text . India. for example. governments may also implement broad policies designed to consider the needs of the economy and society as a whole. that while the Reagan and Bush administrations believed that government’s role in the economy should be limited. An export-promotion strategy encourages a country's businesses to compete in foreign markets by capitalizing on a particular advantage the country possesses. and consequently selected five key areas to receive increased federal support. Some countries that depend on a single export commodity will attempt to diversify their economies to minimize risk.120 > Chapter 8 • Strategic trade theory applies only to markets that are incapable of supporting more than one or two firms on a worldwide basis. the Clinton administration believed that the government should play a much larger role. • Governments struggle to identify what the role of government should be in a market economy. National Trade Policies In addition to focusing on the needs of particular industries. It focuses specifically on Airbus' A-3XX which will compete primarily with Boeing's long dominant 747. • Critics of industrial policy argue that such programs may not improve the global competitiveness of a country since bureaucrats cannot perfectly identify the right industries to favor. This policy was used by Australia. In many countries. • The export-promotion strategy has been more successful at stimulating economic development than the import-substitution strategy (see Chapter 2). Since favoring certain industries inevitably hurts other industries. The text provides an example of how Japan’s Ministry of International Trade and Industry (MITI) has played a role in managing the economy. • Industrial policy is used by a government to promote the competitiveness of key products and industries with high growth prospects in international markets. Argentina. rather than potential international competitiveness. the policy is ineffective for a broad range of industries. Critics further suggest that political clout. • Public choice analysis suggests that special interest will often dominate the general interest on any given issue because special interest groups are willing to work harder for the passage of laws favorable to their interests than the general public is willing to work for the defeat of laws unfavorable to their interests. may play a role in determining which industries are selected.

• Ad valorem tariffs are assessed as a percentage of the market value of the goods. The text provides an example of how Tennessee and Kentucky support Japanese investment since both states have been the recipients of Japanese auto plants. . they act as a barrier to trade. Congress frequently endorses special interests. II. • The harmonized tariff schedule (HTS) is a detailed classification scheme for imported goods. Second. are powerless to do anything about it.5 here. they are a source of revenue for governments. as well as with Review Question 4. Most tariffs are collected on imported goods (import tariffs). Companies use the HTS to try to determine what tariffs will be assessed on their goods. • There are two main reasons why tariffs have historically been assessed. The text provides an example of how the HTS is used. • Because of political ramifications.6 here. whichever is higher.1 should be presented here. and bringing them across the border in a piece-meal fashion. This Box fits in well with the discussion of tariffs.1 here. Compound tariffs include both an ad valorem and a specific component. Show Figure 8. Polish customs officials. BARRIERS TO INTERNATIONAL TRADE Barriers to trade can either be in the form of tariffs or in the form of nontariff barriers. First. Discuss Figure 8. Discuss Figure 8. while specific tariffs are assessed as a specific dollar amount per unit of weight or other standard measure. Discuss Bringing the World into Focus: A Loophole Big Enough to Drive Through This Going Global Box describes the curious situation that exists in the auto industry in Poland.Formulation of National Trade Policies > 121 provides an example of this phenomenon using the 1920 Jones Act. Poles have taken to disassembling cars. • Tariffs affect both domestic and foreign special-interest groups.3 here. To avoid paying the duty. Companies should recognize this situation. Developed nations typically assess ad valorem tariffs. Tariffs • A tariff is a tax placed on a good involved in international trade. Tariffs on imported cars in Poland are subject to tariffs of $1900 or 33 percent of the car’s value. Map 8. and consequently increase the demand for domestic products. and work within it.4 here. but some are collected on goods as they leave a country (export tariffs) or pass through a country (transit tariffs). while aware of the process. Show Figure 8. The text provides an example of how a $2000 specific tariff on minivans affects various interested parties. particularly in developing countries. Discuss Table 8.

and nontariff barriers (NTBs) have become a common means of protecting industries. and investment controls. They may be used by a country as a disciplinary measure. thus artificially affecting the competitiveness of receiving firms. The text provides examples of each type of NTB. is roughly double the world price. the establishment of foreign trade zones.7 here. The text demonstrates that. and other nontariff barriers that impede international trade. regulatory controls. and export-financing programs are used by governments to promote international business. the price of sugar in the U. A VER is a promise by a country to limit its exports of a good to another country to a prespecified amount or percentage of the affected market. A tariff-rate quota imposes a low tariff rate on a limited amount of imports of a specific good. • Numerical Export Controls. In an effort to increase economic activity and create jobs. Exporting countries may adopt voluntary export restraints (VERs) in an effort to maintain a friendly relationship with trading partners. access to distribution systems. The text provides an example of how subsidies have affected trading patterns in wheat. Embargoes are an absolute ban on the export (or import) of goods to a particular location. The use of tariffs and quotas has been minimized as a result of international negotiations. • Quotas are numerical limits on the quantity of a good that may be imported into a country during some period of time. Countries may also use a numeric system to limit the amount of goods they export. governments may employ subsidies such as tax breaks and/or direct payments to producers. as a result of quotas. the domestic consumer does not.S. PROMOTION OF INTERNATIONAL TRADE Various techniques such as subsidies. . • Other Nontariff Barriers. • Some countries prohibit any importation of a specific product as a means of developing local industry. Subsidies • Subsidies reduce the cost of doing business. Discuss Figure 8. local purchase requirements (requirements to purchase goods or services from local suppliers). but then subjects all imports of the good above that threshold to a prohibitively high tariff. currency controls. III. public sector procurement policies (policies that give preferential treatment to domestic firms).122 > Chapter 8 Nontariff Barriers Nontariff barriers (NTBs) include quotas. Quotas are frequently used to protect industries that are politically powerful. numerical export controls. Use Figure 8. Governments may also provide economic development incentives to attract investment within their communities. • Although domestic producers benefit from quotas.8 here. • Some of the more common NTBs include product and testing standards (requirements that foreign goods meet domestic product standards or testing standards before they can be sold).

. in which case it is a form of predatory pricing. fearing a loss of jobs. Antidumping Regulations • Dumping occurs when (1) a company sells its goods for a lower price in a foreign market than the price it charges in its home market. through the creation of government owned agencies. union officials. • FTZs are used by governments to encourage regional economic development.S. U. The Eximbank may also arrange for commercial insurance services. The goal of the CVD is to create a situation in which trade is a result of competitive and comparative advantage rather than a result of government-provided subsidies. in the U. IV.S. exporters in the form of direct loans and loan guarantees. The text demonstrates the difficulty in identifying dumping situations in the auto industry. or (2) it sells its goods below cost in the foreign market.S. Export Financing Programs • Most major trading nations are. the number has grown from about 25 in the early 1970s to several hundred today. CONTROLLING UNFAIR TRADE PRACTICES When governments feel that domestic exporters have received unfair treatment in other countries they may take retaliatory measures. the International Trade Commission (ITC) may impose duties to counteract unfair trade practices. The text provides as example of how FTZs have become an important component in the automobile industry. OPIC was already discussed in Chapter 3.S. . In the U. Show Map 8.S. The future of the industry is uncertain since NAFTA eliminates the special tariff advantages of Mexican firms located along the U.S. The use of FTZs has grown in recent years. in which case it is a form of international price discrimination. border that import finished goods or component parts and re-export them to the U. border.S. who claim that the factories allow U. have also criticized the maquiladora industry. However.. • Maquiladoras have been the target of environmentalists. factories located in the free trade zone in Mexico along the U.S. For example. firms to escape environmental laws in their own country. in a position to assist domestic firms with the financing of export sales.Formulation of National Trade Policies > 123 Foreign Trade Zones • Foreign trade zones (FTZ) are geographic areas in which imported or exported goods receive preferential tariff treatment. • Antidumping laws are designed to protect local industries from goods that have been “dumped” by foreign producers into the local market. Political risk insurance is provided to U. The Export-Import Bank of the United States (Eximbank) offers assistance to U. are the second largest source of foreign exchange earnings in Mexico. • Maquiladoras. Countervailing Duties • Countervailing duties (CVD) are ad valorem taxes imposed by the government of the importing nation to counter the impact of foreign subsidies.S. exporters by the Overseas Private Investment Corporation (OPIC).. determining whether or not dumping has actually occurred can be tricky.2 here.

• Clothing manufacturers relocate their factories (and workers) from country to country in order to be producing in countries from which U. a section of the 1974 U. Should Countries Enforce their Unfair Trade Practice Laws? • Unfair trade practice laws are intended to (1) promote global efficiency by encouraging production in countries that can produce a god most efficiently. particularly from the EU.'s commitment to free trade principles.'s clothing quota rules.S. they are often enforced in ways that violate their intent. The case explains who usually wins and who loses due to the convoluted structure of the U. Key Points • Despite the U. rather than multilateral. the case describes how the quota system is often manipulated by exporters. the executive branch is required to take retaliatory measures. • Though the intentions of these laws are laudable. (2) ensure that trade occurs on the basis of comparative advantage (not because of government subsidies.S.S. . • Super 301 has been the target of much criticism. and (3) protect consumers from predatory behavior. clothing imports are still allowed.S. If negotiations are unsuccessful. C L O SI N G C A S E The Great Quota Hustle The closing case discusses the quota system governing the import of clothing into the U. which argues that the law hinders the development of global trade and promotes unilateral. Trade Act. • The quota system limits the amount of clothing imports from particular countries. requires the U.124 > Chapter 8 Super 301 • Super 301.S.S. Teaching Note: Instructors may wish to discuss the measures taken by the Clinton Administration in early 1995 to protest unfair trade practices by the Chinese. trade representative to publicly list those countries engaging in the most flagrant unfair trade practices and to negotiate for the elimination of the practices. attempts to redress problems facing international trade. trade is anything but free in the apparel industry. After a brief discussion of how the system began.

government. given labor rates in the U. -. They are allowed to ship specific amounts of garments to the U.Formulation of National Trade Policies > 125 • The system fosters falsification of origin documents in order to create the impression that garments were manufactured in certain countries (from which they would be allowed into the U.S. Foreign clothing manufacturers also lose because they need to produce in countries from which clothing is allowed into the U.S. companies are able to domestically produce competitively priced garments. permission to export a specific amount of clothing to the U. few U. Will its elimination benefit or harm the U. Who gains and who loses from the use of these quotas? The biggest loser is the U. 2. The costs associated with the loss of protection for the few remaining domestic apparel manufacturers will be more than offset by savings to consumers from more efficiently produced imported clothes. • The quota system required continuous monitoring by the U.S. imposing a "tax" on consumers. quota holders are able to charge premium prices for their goods.) make money because they are quota holders. economy? Defend your answer. consumer. It should benefit the U.S.S. The additional cost of clothes reduces disposable income for buying other goods. 4.S.S. What was the original purpose of placing quotas on clothing and textile imports? Are those goals now being met? They were originally intended to protect domestic manufacturers. 3. Since quotas limit the supply of clothes. economy. What is the impact on the U.S. However. The quota system is scheduled to be eliminated this decade.S.. Case Questions 1. • Companies holding quotas (that is. .S. which sends teams all over the world to verify that clothing is actually being manufactured where clothing tags and certificates of origin claim.). economy of these quotas? They drive up the cost of imported garments.they can't simply produce in the most efficient location. The winners are those companies that own quota rights. not necessarily because they are efficient manufacturers.S.

numerical export controls. What is the infant industry argument? The infant industry argument suggests that the infant manufacturing sector in a newly independent country be given protection from foreign competition until it has reached a level of maturity that will allow it to effectively compete in the marketplace. Firms that are active in exporting benefit from free trade as do the firm’s employees. 6. it can wipe out (or shrink) the expected profit margin on a product. and investment controls. Under such an agreement. An export tariff is levied on goods as they leave a country. What is free trade? Who benefits from it? Free trade implies minimal government influence on the exporting and importing decisions of private firms and individuals. 2. and avoid a confrontation over trade. Customs Service? It is important for an importer to seek out advance tariff classification because if a customs officer subjects imported goods to a higher tariff rate than expected. and voluntary export restraints. currency. Why might a nation adopt a VER? A nation might adopt a voluntary export restraint agreement in an effort to maintain friendly relations with trading partners. Other nontariff barriers include product and testing standards. What are the different types of tariffs? A tariff is a tax placed on a good involved in international trade.S. Examples include embargoes which absolutely ban a particular export. while a transit tariff is levied on goods as they pass through a country bound for another country. public sector procurement policies that give preferential treatment to domestic firms. Numerical export controls limit the amount of a good that is exported. local purchase requirements. The text provides an example of how Japan used the argument to protect certain industries during the period after World War II. An import tariff is levied on imported goods either on an ad valorem basis (assessed as a percentage of the market value of the imported good) or as a specific tariff (assessed as a specific dollar amount per unit of weight or some other standard measure). Compound tariffs include both ad valorem and specific tariffs. restrictions on access to distribution systems. Quotas are numerical limits on the quantity of a good that may be imported into a country during a specific period of time. and consumers. Why is it useful for an importer to seek out an advance tariff classification from the U. 5. 3. a nation would “voluntarily” limit its exports to another nation to a pre-specified amount or percentage of the affected market. 4.126 > Chapter 8 1. C H A P T E R R E VI E W . and regulatory. and other nontariff barriers. the communities where factories are located. What are the major forms of NTBs? The major forms of nontariff barriers include quotas.

Typically. Questions for Discussion 1. What is the purpose of a CVD? A countervailing duty is an ad valorem tariff imposed by the government of an importing nation to counter the impact of foreign subsidies. foreign trade zones are used to stimulate economic development. companies should successfully capture large shares of important. However. The Eximbank also provides. exports through direct loans and loan guarantees.Formulation of National Trade Policies > 127 7. trade continues to be driven by the competitive strengths of companies and by the laws of comparative advantage. it formulates policies based upon the needs of the national economy that will promote the competitiveness of key products and industries with high growth prospects in international markets. What is a FTZ? A foreign trade zone is a geographic area in which imported or exported goods receive preferential tariff treatment. . Because countervailing duties are assessed so that they just offset the advantage that an exporter obtains from a subsidy. What is the role of Eximbank? The Export-Import Bank of the United States (also known as the Eximbank) provides financing for U. growing markets. In such instances dumping is a form of predatory pricing. Firms using foreign trade zones can reduce and even eliminate customs duties. If the policy works as it is designed. routine commercial insurance services for Eximbank-supported exports. The second form of dumping is when a firm sells its goods below cost in a foreign market. It has been suggested that companies that are selected for preferential treatment may be selected on the basis of their political clout rather than on their foreign market potential. the main difficulty with industrial policy is correctly identifying which industries should receive favorable treatment. 10. Firms and employees in industries that are being threatened by low-priced imports may find themselves without any kind of protection if the government determines that their companies are not the companies of the future. What are the two definitions of dumping? Dumping occurs when a firm sells its goods in a foreign market at a price below what it charges in its home market. 8. What are the advantages and disadvantages of an industrial policy? When a government adopts an industrial policy.S. 9. either directly or through subcontractors. This type of dumping is a form of international price discrimination.

Since 1992 Indonesia has imposed high export taxes on the export of raw wood and on sawn timber. Among those on the list will probably be the airline industry. such as furniture makers. Because of Japan’s success in competing in international markets. if the foreigner has a comparative advantage in the good being exported. trade barriers cost Japanese consumers between $75 billion and $110 billion. However. some Japanese workers may find themselves unemployed as their companies respond to increased competition with layoffs. McDonnell Douglas. 3. Strategic trade theory applies to industries that are composed of only a few firms worldwide. 5. Should we worry if foreigners sell us goods cheaply? Probably not. it has been the target of numerous complaints that it restricts foreign access to its local markets. Why would they do this? (Hint: what is the impact of export tariffs on the domestic market for wood and timber? Which domestic industries would benefit from this impact?) Who is hurt by high export taxes? Export tariffs have the effect of reducing the amount of a product that is exported. chemicals. However. consisting of Boeing. worry might be justified. will probably find that lowered barriers will have a negative effect on their profits. 4. as would those industries using wood as a raw material. foreign firms that have been denied access to the Japanese consumers will benefit from its more open market place. If the foreign exporter is engaging in predatory pricing with the hope of eventually driving domestic competitors out of business. 1 Second. in 1989. and apparel. textiles. Japanese firms that have been protected to a large extent from foreign competition in their domestic market place. As Japan reduces its barriers to imported goods. Certainly. Students will probably identify a number of different industries that fit this bill. consisting of the Big Six accounting firms. who is likely to gain from lowered barriers? Who is likely to lose from them? There are at least two constituents that are likely to gain from Japan’s lower barriers to imported goods. Countries often impose such tariffs to limit exporting of products that are in short supply. First.128 > Chapter 8 2. such as food and beverages. Consumers are paying less for goods that are being produced more efficiently (in and absolute or relative sense) elsewhere. and Airbus. Japanese consumers will probably benefit from the lower prices and increased choice that occurs when competition becomes stronger. Indonesia’s imposition of export tariffs on raw wood and sawn timber will have the effect of increasing the supply of those products within the domestic marketplace. List as many industries as possible that fit this description. 2 In addition. machinery. In fact. one might argue that the timber industry could demand a higher price for its products if it were permitted to export them with incurring duties. construction and building companies would stand to gain from these tariffs. and the accounting industry. . cheap imported goods benefit the exporting nation and the importing nation as well. metals. While the tariffs may benefit these industries.

Ask them about their export development programs. The answer to this question is clearly city-specific.Formulation of National Trade Policies > 129 Essence of the exercise This exercise requires students to report on trade barriers that various countries impose on certain products. You can do this by using A Basic Guide to Exporting from your library. or simply call their Chamber of Commerce to identify the local branch of the US&FCS. In larger cities. 1. asking a local banker. and will probably be affected by the size of the city in question. Answers to the follow-up questions. Ask the local US&FCS office to send you literature on its activities and a list of its “Country Desk Officers” (experts knowledgeable about the markets in specific countries) and “Industry Desk Officers” (experts knowledgeable about the international markets for individual products). The local office of the US&FCS should be able to send instructors information about its activities. The telephone number of the U. Students are required to complete the assignment by accessing information both via the Internet and through published sources. 2.S. Asse ssing Trad e Barri ers WO RKI NG WIT H THE WE B: B U IL D I N G G L O B A L S K IL L S . Instructors may want to follow the suggested search path. Find out which branch office of the US&FCS serves your local market. Typically. or chatting with local chambers of commerce. looking in your local phone book. cities will run various seminars on exporting. the response to this question will be city-specific. while smaller cities may have rather limited resources. calling your congressperson’s office (the staff there are experts about the federal bureaucracy). students will probably find that extensive export development programs are available. Find out which state agencies in your state are responsible for promotion of exports by local businesses. Trade Information Center is 1-800-USA-TRADE. Students are asked to take on the role of an exporter and learn about the exporting process. The information will probably include several telephone numbers that exporters can call for information. and have information on trade shows. provide lists of written material on trade. Essence of the exercise This exercise is designed to introduce the student to various sources of information available to companies that wish to expand internationally. Again.

130 > Chapter 8 Ask how it can help local firms identify 3. Identify the SBA district office in your area. Larger cities will tend to have more resources available than smaller ones. 4. Locate any private organizations in your area (profit and nonprofit) that provide trade development services. Information about the Small Business Administration can usually be obtained from the local Department of Commerce. and consulting services on an individual basis. information on country markets and regulations. which may provide market research information. The answer to this question will again be dependent on the location and size of the city in question. Ask them about the types of services they offer to their members and to newcomers like yourself. promising export markets. Students may wish to contact the local Department of Economic Community Development. .

March 6.” Fortune.1 2 “Japan’s Price Of Protection. 1995 . 1995 “Japan’s Price Of Protection. March 6.” Fortune.

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