exporting cont.

IB

top5 countries of trading with US = 1.Canada 2.China 3.Mexico 4.Japan 5.Germany
Physical barriers (oceans, rivers, deserts, mountains) - Canada&Mexico have physical values for trading with US / China&Japan have barriers but using ship(boat) is slowest but cheapest way to carry things
Cultural barriers (languages, food, education system) - Canada&Germany don't have many barriers
Political Barriers - Embargo: don't let a particular country trade (i.e. Cuba, NKorea, Iraq... cuz we don't like them!XP)

  • protectionism - Quota: number limit (i.e. Toyota - 1mil.cars/yr to enter US → 2nd brand Lexus, 3rd brand Scion were born to get around quota)
  • - Tariff: trade tax (i.e. Chinese steel...can protect US labor but still Chinese ones sold here for expensive price but good quality)
  • - Regulation: i.e. BSE problem with Japan (Japanese gov wanna protect fishing industry)

USSR(Soviet Union) & NKorea - big protectionist : very poor