International trade (exam #2)

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International trade (exam #2) Door Mind Map: International trade (exam #2)

1. Rules of origin

1.1. Preferential origin

1.1.1. It determines if the good qualifies for a preferential tariff when there is an agreement

1.1.1.1. Wholly obtained

1.1.1.1.1. These are the ones obtained entirely from the region of an FTA party: there should not be non-originating materials included.

1.1.1.2. Substantial transformation

1.1.1.2.1. It is a rule that requires the goods to go under certain processes so they can be considered as originated in a given country.

1.2. Non-preferential origin

1.2.1. Applies to goods traded between regions or countries that are not related by preferential trade agreements.

2. Integration trade in services

2.1. Mode 1: Cross-border supply

2.1.1. Ex: movies edition, YouTube tutorials..

2.2. Mode 2: Consumption abroad

2.2.1. Ex: music production, concerts...

2.3. Mode 3: Comercial presence

2.3.1. Ex: construction services, restaurants (hard rock)...

2.4. Mode 4: Presence of natural person

2.4.1. Ex: photography services, tattoo artists...

3. Intellectual property rights

3.1. Allow creators to benefit from their own work. It’s classified in two groups:

3.1.1. Industrial property

3.1.1.1. It’s for: patents for inventions, trademarks, industrial designs and geographical indications.

3.1.2. Copyright

3.1.2.1. It’s for: literary works, films, music, artistic works and architectural designs.

4. Labour and environmental regulations

4.1. These are related to International Trade in the way that they are connected as a “chain”, and International Trade affects these regulations in an “unethical” way because many companies only want their products to be done at less costs, and do not mind about living standards or the wages some people have because it is “legal” like that in some countries.

5. Economic integration

5.1. What?

5.1.1. It’s a process where economies decide to eliminate trade barriers or economic obstacles to obtain benefits

5.2. When?

5.2.1. Happens when economies want to grow and they can use the bargaining power they have or the international coet.

5.3. Who?

5.3.1. There should be considered some factors: politics, culture or level of development.

5.4. How?

5.4.1. There are 6 stages where it can occur:

5.4.1.1. 1) Free trade areas

5.4.1.1.1. 4) Economic union

5.4.1.2. 2) Customs union

5.4.1.2.1. 5) Monetary union

5.4.1.3. 3) Common market

5.4.1.3.1. 6) Social and political integration

6. INCOTERMS

6.1. E

6.1.1. EXWORKS (any mode of transportation)

6.2. F

6.2.1. FCA (any mode of transportation), FAS (by sea), FOB (by sea).

6.3. C

6.3.1. CPT (any mode), CIP (any mode), CFR (by sea), CIF (by sea).

6.4. D

6.4.1. DAP, DPU, DDP. (All of these by any mode of transportation)