TRADE AND INVESTMENT POLICIES Copyright © Texas Education Agency, 2012. All Rights Reserved.

TRADE AND INVESTMENT POLICIES

Copyright © Texas Education Agency, 2012. All Rights Reserved.

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Purpose of Assignment

SWBATStudent will be able to…

Understand the role of foreign aid in global trade and investment.

Explain the goals and function of the General Agreement on Tariffs and Trade and the North American Free Trade Agreement.

Identify the major ways in which imports are being restricted and give reasons for controlling exports.

Research case studies and issues on global trade using appropriate online technology.

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Need to Know Terms

Foreign aid Global

trade Global

Investment

GATT NAFTA Imports Exports Restricted

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InstructionRole of Foreign Aid in Global Trade and Investment

Foreign Aid is the unilateral transfers of US resources (funds, goods, and services) by the US Government to or for the benefit of foreign entities (including international and regional organizations) without any reciprocal payment or transfer of resources from the foreign entities. Foreign assistance is not just confined to funds or commodities, it also includes the provision of technical assistance, capacity building, training, education, and other services, as well as the direct costs required to implement foreign assistance.

DiscussionIf one of the main goals of trade and investment is to make money, and foreign aid, by definition, is to transfer resources without any payment, what role

does foreign aid play in global trade and investment?

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InstructionGoals and General Function of GATT (General Agreement on Tariffs & Trade

Founded in 1947 and operating in 1948, GATT had two main goals:

promote world trade through negotiation make world trade secure

Working on these goals helped increase global economic growth and development. In

1955, GATT was replaced by WTO (World Trade Organization). It has the same goals as GATT, but in addition, has the power to settle

trade disputes and enforce the free-trade agreements between its members.

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InstructionGoals and General Function of NAFTA (North American Free Trade Agreement)

NAFTA began in 1994 with two goals in mind: ensure open markets ensure fair competition between companies in

Canada, Mexico, and the United States

Under the NAFTA, all non-tariff barriers to agricultural trade between the United States

and Mexico were eliminated. In addition, many tariffs were eliminated immediately,

with others being phased out over periods of 5 to 15 years. This allowed for an orderly

adjustment to free trade with Mexico, with full implementation beginning January 1, 2008.

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InstructionMajor Ways Imports are Being Restricted

Specific items are restricted from being imported, http://www.cbp.gov/xp/cgov/travel/vacation/kbyg/prohibited_restricted.xml

Government agencies are in place to monitor imports, http://www.fas.usda.gov/itp/ofsts/us.html

Specific standards have to be met by importers before allowing importation, http://www.cbp.gov/linkhandler/cgov/newsroom/publications/trade/iius.ctt/iius.pdf

Taxing of imported goods8Copyright © Texas Education Agency, 2012. All Rights Reserved.

InstructionReasons for Controlling Exports

To protect the health and safety of workers.

To ensure products are safe to use.

To protect local businesses from foreign competition.

Political risks.9Copyright © Texas Education Agency, 2012. All Rights Reserved.

Independent PracticeCase Studies-Global Trade

Find three articles that discuss global trade.

Once you’ve located the articles, record the following information: Name of Article Source of

Article Writer of Article Summary of

Article

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Review

Do you understand the role of foreign aid in global trade and investment?

Can you explain the goals and function of the General Agreement on Tariffs and Trade and the North American Free Trade Agreement?

Can you identify the major ways in which imports are being restricted and give reasons for controlling exports?

Did you research case studies and issues on global trade using appropriate online technology?

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Extensions

Foreign AidIf you had $100 and could divide it up to where a portion of it went to foreign aid and another went to exporting a good/service, how would you do it? Why?

GATTThe GATT eventually became the WTO (World Trade Organization). What are the goals of the WTO?

NAFTAThis is the agreement between the US, Mexico, and Canada. Why do you think we have our own group as opposed to joining the European Union?

Exports and ImportsMake a list of five things you have purchased or want to purchase. Do some research and find out if any of those items are either imported to or exported from the US.

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Assessment Rubric 13Copyright © Texas Education Agency, 2012. All Rights Reserved.