GEOPOLITICAL INFLUENCES ON TRADE

What was Hamilton suggesting of entrepreneurs in his "Report on Manufactures" in 1791?

To increase economic output by taking ideas from more developed manufacturers

Why is it important for countries to protect intellectual property?

To protect jobs To ensure economic growth

Maquiladoras are most similar to American _____.

factories

Identify how protecting sovereign boundaries in regards to intellectual property has a positive effect on the GDP in at least 150 words. Your answer should be in complete sentences.

By protecting sovereign boundaries in regards to intellectual property has a positive effect on the GDP; The specific invention is only done or produced by the inventors only.

Select the answer that most accurately describes the effects of NAFTA.

It is difficult to assess all the results of NAFTA, but most economists agree that NAFTA has been beneficial to the countries involved.

Using all that you have learned about trade-blocs, identify both the positive and negative aspects they can have on a country. Then, decide if, overall, their results are good or bad for the countries involved. Be sure to provide specific evidence to prove your stance. Your answer should be in complete and complex sentences and at least 150 words in length.

The positive aspect of trade blocs is that consumers in all member countries benefit from higher quality goods and services at lower prices. This happens because of the elimination of barriers to trade, such as tariffs and quotas, which allows companies from different countries to compete equally with local companies. These companies benefit from increased access to resources, which lowers the cost of production of goods and services significantly. While the negative side of it is that include the displacement of jobs because of increased competition from companies in member countries. Workers are usually displaced as companies are closed and they may remain unemployed for extended periods of time; workers usually get jobs later, but at a lower wage. National economies within a free trade bloc are susceptible to events such as recessions in other member countries, which affect them directly. This is because free trade blocs encourage specialization among member countries, which increases their dependency on each other.

Match these items. Match the items in the left column to the items in the right column.

intellectual property = creations of the mind, such as inventions and literary and artistic works maquiladoras = manufacturing operations in Mexico where certain materials are duty- and tariff-free protective tariffs = a duty imposed on imports to raise their price. sovereignty = the authority of a state to govern itself trade-bloc = an agreement between countries to reduce trade barriers

The Smoot Hawley Tariff _____.

negatively affected American industry

Select all that apply. Protective tariffs are considered positive because _____.

they generate income for the government they protect local industry