After reading this chapter, you should be able to answer these questions:
- Why is global trade important to the United States, and how is it measured?
- Why do nations trade?
- What are the barriers to international trade?
- How do governments and institutions foster world trade?
- What are international economic communities?
- How do companies enter the global marketplace?
- What threats and opportunities exist in the global marketplace?
- What are the advantages of multinational corporations?
- What are the trends in the global marketplace?
- 3.4: Barriers to Trade
- International trade is carried out by both businesses and governments—as long as no one puts up trade barriers. In general, trade barriers keep firms from selling to one another in foreign markets. The major obstacles to international trade are natural barriers, tariff barriers, and nontariff barriers.