- •1. International trade: Export and import.
- •2. International trade: investments.
- •3. Visible and invisible trade.
- •4. A nation’s balance of payments.
- •5. Documents needed in international trade and incoterms.
- •6. Trade restrictions: tariffs, subsidies, quotas and cartels, How trade restrictions affect international trade.
- •7. The world trade organization. European financial sector.
- •8. Forex.
- •9. Countertrade
- •10. Types of businesses.
- •12. Auditing the accounts of a limited company.
- •13. The work in the Account Department. Debtors.
- •14. Insurance for a private company.
- •15. Types of securities.
- •16. Mergers, takeovers & acquisitions
- •17. Advantages and disadvantages of small businesses.
- •18. Advantages and disadvantages of corporations.
- •19. New product development.
- •20. Decisions about the gearing the company.
6. Trade restrictions: tariffs, subsidies, quotas and cartels, How trade restrictions affect international trade.
Many nations impose limits on trade. There are four main types of trade restrictions: tariffs, subsidies, quotas and cartels. The tariff is a tax placed on imported goods. Tariffs are of two kinds - revenue and protective. A revenue tariff raises money for the government and they are low, so consumers will continue to purchase the taxed goods. Protective tariffs make imported products more expensive and encourage people to buy goods produced in their own country
A subsidy is a tariff in reverse. The government gives a subsidy to the industry that is suffering from foreign competition.
A nation also can limit the amount of goods that can be imported into the country. It's called a quota. Usually, quotas are imposed when tariffs and subsidies couldn’t protect domestic industries from foreign competition.
Sometimes a group of companies or countries band together to restrict competition. It's called a cartel. The members of the cartel agree to limit the supply and control the price of a certain good. Members meet regularly to decide how much to sell and how much to charge for their product.
It's better for nation to use tariffs, because they provide domestic job protection and aid industrial development. Also tariffs are important to the national defense.
Trade restrictions limit world trade, reducing the total number of goods and services produced. Trade restrictions also raise prices.
That's why there is an international organization as GATT (General agreement on Tariffs and Trade), which members met periodically in an effort to lower tariffs and settle trade disputes.
7. The world trade organization. European financial sector.
Thе World Trade Organization came into being in 1995. The WTO is the successor to the General Agreement on Tariffs and Trade (GATT). GATT and the WTO have helped to create a strong and prosperous trading system.
The main purpose of WTO is to help trade flow, freely, fairly, and predictably. It does by:
Administering trade agreements
Acting as a forum for trade negotiations
Settling trade disputes
Assisting developing countries in trade policy issues, through technical assistance and training programmes.
Cooperating with other international organizations
The WTO has more than 130 members, accounting for 90% of world trade. Over 30 others are negotiating membership. Decisions are made by the entire membership and by consensus.
The WTO’s agreements have been ratifies in all member’s parliaments. The WTO’s top level decision-making Body is the Ministerial Conference which meets at least once every two years. The General council also meets as the Trade Policy Review Body and the Dispute Settlement Body. At the next level, the Goods Council, Services Council and Intellectual Property (TRIPS) Council report to the General Council. Numerous specialized committees, working groups and working parties deal with the individual agreements and other areas such as the environment, development and so on.