Foreign trade

Protectionism is an economic policy that seeks to protect the production and jobs of a country by imposing restrictions, limitations or tariffs on goods or services from abroad (imports) making them more expensive to make them less competitive against nationals.

specialization and gains from trade

Motivations for foreign trade Foreign market business allows greater efficiency in the use of various resources, both internal and external, to: Take charge of improving the growing needs of the national and international economy. International trade is closely related to the mobility of resources and the distribution of activities productive areas of a country, so it has a great influence on the creation of jobs, public and private investment, as well as the establishment of the economic policy that will govern a country.

Economics is the social science that studies how families, companies and governments organize available resources that are usually scarce, to satisfy different needs and thus have greater well-being.

The development and well-being of a society are linked to an adequate economic policy that generates growth, without neglecting highly relevant issues, such as the reduction of poverty and inequality, environmental sustainability, the increase in life expectancy and the decrease in infant mortality.

Specialization and comparative advantages Comparative advantage is the ability of an economy or country to produce a good or service at a lower price compared to others. This is used to explain why companies, countries or investors themselves can benefit from this trade.

Benefits from tradeWithout a doubt, international trade promotes the creation of new quality jobs with better wages. The arrival of industries and companies from different sectors to any country facilitates the reduction of unemployment because it increases the labor supply in each of the regions.

Trade is an engine of growth that creates jobs, reduces poverty and increases economic opportunity. The World Bank Group helps its client countries improve their access to developed country markets and increase their participation in the world economy.

Trade policy and protectionism.

Interventionism is a mode of economic thought. This defends the need for an active and constant participation of the State. The purpose of this being to solve economic problems, as well as to take charge of the management and control of a certain economic system.

International trade. International trade is that economic activity that refers to the exchange of goods and services between all the countries of the world.

Arguments in favor of protectionism The adoption of protectionist measures is justified to protect the national industry from the competition of foreign companies that are carrying out unfair practices, in the sense that they are selling in foreign markets at a price below cost or at a price below that of the market of origin .

Reasons that justify protectionism The protection of industries considered strategic for the public interest. The development of emerging industries. The promotion of industrialization and the creation

of employment. The collection of money. Tax imports.

Isolated Equilibrium: Autarky Autarky is a situation of total independence and self-sufficiency in political and socioeconomic terms. Thus, the country or region does not participate in international trade.

International trade. International trade is that economic activity that refers to the exchange of goods and services between all the countries of the world.

Trade and substitute products Substitute products are those goods that can be consumed in the place of others. Its main characteristic is that they have interrelated demands, that is, the consumer knows that you can substitute one for another when you deem it appropriate.

Rates and Fees

A rate is the fee, or the list of fees, that must be paid by a consumer or user who wishes to acquire a good, as well as use a certain service. The rate is established in the price policy of a company, or in parliamentary headquarters. In this sense, said rate can be public or private.

Selection of a tariff rate Regardless of whether a tariff is bound or applied on preferential versus non-discriminatory terms, it can take various forms. The most common form is an ad valorem tariff, which means that the customs duty is calculated as a % of the value of the product. The tariff schedules of many countries also include a variety of non-ad valorem tariffs.

Tariffs. A tariff is a tax or levy that applies only to goods that are imported or exported. The most common is the one charged on imports. In the case of Peru and many other countries, tariffs are not applied to exports.

Quotas. The quota is an amount of money that is paid on a regular basis and that can go with interest proportional to the amount that was granted to us. For example, you buy a PC and you see that you cannot pay for it at the moment and that is why you decide that you want to pay in 12 months; this is called quotas.

Guarantee prices with regulatory rights and compensatory premiums

The general objective of the Guarantee Prices Program is to supplement the income of small and medium-sized agricultural producers of basic grains and milk. That the small producers of corn, beans and milk complement their income and increase their production through the guaranteed prices received.

Regulatory rights The company's activity includes support to new operators in matters of regulation, relations with the competent Portuguese and foreign regulatory authorities and compliance with regulatory law. It acts in this field taking into account the needs and specificities of clients, both from the point of view of private law and public law.

Compensatory premiums These are old commitments (prior to 2006) contracted with farmers, in order to compensate for the loss of income produced by the change from agricultural use to forest use, during the 20 years after the plantation was carried out.

Public intervention in the regulation of the prices of agricultural products has formed part of the economic policy of many countries in order to stimulate agricultural activity, since the agricultural sector must ensure society a sufficient and accessible quantity of agricultural products to satisfy the demand for food and raw materials.

Proportional import quotas and direct production subsidies and Voluntary import quotas, administrative distortions and Import and consumption subsidies

Direct subsidies to production They are current payments, without compensation, that the Federal Government makes to companies based on their participation in production; used as a means to the government, to make market prices of some goods or services more accessible

It is an economic policy that seeks to protect the production and jobs of a country by imposing restrictions, limitations or tariffs on goods or services from abroad (imports), making them more expensive to make them less competitive compared to national ones.

Administrative Trade Distortions Trade distortion occurs when prices are higher or lower than normal and when quantities produced, bought and sold are also higher or lower than normal, that is, at levels that would normally exist in a competitive market.

mport quotas are a commercial policy instrument through which a country establishes limits on the import of certain products according to the commercial strategy that it wants to carry out.

Expansion of exports through guaranteed prices, subsidies and promotions

dumping Dumping is, in general, a situation of international price discrimination: the price of a product, when it is sold in the importing country, is lower than the price at which that product is sold in the market of the exporting country.

Export subsidies. An export subsidy is a benefit conferred on a company by the government that is contingent on export. A domestic subsidy is a benefit not directly related to exports.

The economic impacts of subsidies tend to be significant, since they consume the revenues and taxes collected by the government and thereby divert valuable resources away from productive sectors to keep the price below its true value.

An export subsidy is a payment made to a company or individual that sells a good in another country. Export subsidies are intended to support national companies in international markets.

The promotion of exports is offered by the government of each country, due to the need to assume it to stimulate exports, in order to improve the competitiveness of companies in the domestic market and in foreign markets and reduce the trade balance deficit.

Trade allows each economy to specialize and export the goods and services it can produce cheaply and import those it cannot. This promotes the growth of the most competitive sectors and companies in the country, while expanding the margin of choice for consumers at lower prices.