Question

What is a multinational? Please provide an example. What are tariffs? Import quotas, and embargo? What is the relationship between them? What is the WTO? What is their purpose? Why was NAFTA created? What is one benefit, and one drawback? Name 3 ways to manage a business ethically.

Answer 1

A multinational is the one entity or an organisation or a business that has its branches in more number of countries.For instance Suzuki ,Coco cola corporation are some multinational companies.

Tariffs:- when a prescribed government duty or taxed on a particular export or import then it is known as a tariff. Example- a tax on imported mobile phones.

Import quotas:-when the government wants to promote local market goods it tries to regulate imported items hence the quantity of imported items will be restricted giving rise to local products it's a kind of trade restriction.

Embargo:-forsaking the trade with a particular nation by banning it's products or restraining its trade. The common thing among tariffs ,import quotas,embargo is that they are related to restrictions of trade with particular country.they are interconnected with each other.

WTO(World trade organisation):- WTO is an international organisation set up for monitoring the trading activities between countries .It regulates the trade barriers,formulates new rules , negotiates between the countries over trade disputes and tries to maintain global trade by involving every member country.it helps developing countries in terms of tax exemptions and tax reductions .

NAFTA(North American free trade agreement):- it was created mainly to benefit the U.S Canada ,Mexico governments that came into effect in 1994 . According to which​trading between the countries becomes easier and trade barriers had been abolished in order to promote peaceful trade .Its purpose is to enable trade growth among the member countries by encouraging investments (sometimes mutual) in the countries.drawbacks include The US says its jobs are affected . Deterioration of environment etc.

Ethical treatment in business includes fair treatment of its employees,showing honesty and integrity in maintaining the assets and profit of the business,when government stipulates some rules and regulations then you must abide by them, payment to workers without any gender bias, maintaining quality in the products and services,always respect the customers by enabling him satisfying services etc.