Concept Previews

After reading this chapter, you should be able to:

understand the theories that attempt to explain why certain goods are traded internationally

comprehend the arguments for imposing trade restrictions

explain the two basic kinds of import restrictions: tariff and nontariff trade barriers

state the agreements reached during the Uruguay Round

appreciate the relevance of the changing status of tariff and nontariff barriers to businesspeople

recognize the weaknesses of GNP/capita as an economic indicator

identify the common characteristics of developing nations

understand the new definition of economic development, which includes more than economic growth

understand why some governments are changing from an import substitution strategy to one of export promotion and the implications of this change for businesspeople

explain some of the theories of foreign direct investment