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Assignment - Essay Example

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For each special area, laws have an impact on the ability of companies with respect to trade and investment outside the country. For instance, the impact can be seen in the export of iron. This trade also has an…
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Download file to see previous pages... that includes export control, protectionism, strategic trade policy incorporating foreign direct investment (FDI), capital controls, and regulation, antitrust, and competition policy.
There are groups of small businesses that require political protection. These also require economic laws to be protected especially from the competition of foreign projects such as Saudization. It is defined as goods imported from abroad. It leads to abandoning local goods. There are several methods that can be used to protect these businesses and include import tariffs. This is a tax imposed by the government on goods imported from abroad. Whether service or commodity, quotas that are importing goods must follow certain laws. Tax cuts to local businesses are taxes taken from a local business. This is done directly by a state. Protectionism it is a kind of trade policy. In addition, the antitrust and competition policies are also used to protect the local economy for the small businesses in the country. The antitrust policy erases professional competition from large companies. Additionally, it promotes laws that prohibit monopolization, which affects the profit making capacity of the smaller businesses in the area. This also helps in preventing large companies from growing to the point that they gain strong control of the market as compared to other companies. This can also be viewed as preventing one organization from controlling the entire market. The presumed anti- competitive behavior prices are too high. There are benefits to companies if they follow the antitrust laws such as the use of national resources in a professional manner and having a more localized growth, achievement of stability in prices for both output and employment.
If the figures of imports were rising disproportionately to export figures, imports would be more than exports. It must be specified which goods can be exported to the outside. These laws protect the domestic economy of the country from the impact ...Download file to see next pagesRead More
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