Pestle Analysis on Ford

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Economics and the business world week10
International business

Government and international trade

Globalisation is........

Arguments for globalisation it allows specialisation, increase output, higher standard of living

On the other hand globalisation can lead to equality and multinational corporations, And undermines the state power, human rights and the environment.

Effects of globalisation
Worldwide events are interconnected
Real-time impact
Disappearing border
Newmarket
New organisations
New rules and norms
New technology

International trade is buying, selling goods and services from other countries

The purchase of goods and services from abroad that leads to an outflow of currency from the UK this is known as an imports (M)

The sale of goods and services to buyers' from other countries leading an inflow of currency to the UK this is known as export (x)

Absolute advantage
The ability to produce one product at lower-cost( labour and capital )than the other country and trading the surplus for the other product.

Comparative advantage
Even if a country has an absolute advances in both projects it can gain by specialising in the product in which its absolute advantage is great

Trade restrictions devices
Tariffs, quotas, exchange rates

protectionism is the economic policy of restraining trade between states, tariff Quotas government regulations

Success fact sheet general agreement on tariffs and trade(GATT)in 1995 WTO PRINCIPLES

CRITICISM OF WTO
Biased Towards some country e.g. EU and USA
Ability to progress

Free-trade area
Where member countries reduce or abolish restrictions on trade with each other while maintaining other individual protectionist measures against nonmember.

Custom unions
Where as well as freeing trade Among members, a common external tariff is establish to protect the group from imports from Any non-member

Common market
Where the customs union is extended to include the...
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