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Promotion of international trade P278-281 - Coggle Diagram
Promotion of international trade P278-281
Subsidies:!:
Reduces the costs of business operations
Although tax payer picks up the bill
Entices foreign firms to locate or expand their firm in the community
Can take the frm of
reduction of utility bills
Property tax abatents
Free land
Training programmes
Artificially increases a firms competitiveness in export markets
Helps domestic firms fight off foreign firms
Distrorts trade; depresses prices
Impoverishment of the poor - less developed economies will be hit the hardest
Foreign Trade Zone - FTZ
:!:
A geographic area in which imported goods and exported goods receive preferential treatment
Used to spur regional economic development
FTZ can reduces/delay/remove cusrom duties
Export financing programmes
:!:
Government run agences to assist their domestic firms in arranging financing of export sales
IE The export - import bank of the US provides financing for US exports through loans