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15 Cards in this Set
- Front
- Back
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free trade |
refers to a situation in which a government does not attempt to restrict what its citizens can buy from or sell to another country |
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tariff |
tax levied on imports (or exports) |
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specific tariffs |
are levied as a fixed charge for each unit of a good imported |
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ad valorem tariffs |
levied as a proportion of the value of the imported good |
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subsidy |
government payment to a domestic producer |
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import quota |
a direct restriction on the quantity of some goods that may be imported into a country |
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tariff rate quota |
a lower tariff rate is applied to imports within the quota that those over the quota |
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voluntary export restraint |
quota on trade imposed by the exporting country, typically at the request of the importing country's government |
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quota rent |
the extra profit that producers make when supply is artificially limited by an import quota |
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administrative trade policies |
bureaucratic rules designed to make it difficult for imports to enter a country |
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dumping |
is variously defined as selling goods in a foreign market at below their costs of production or a selling goods in a foreign market at below their "fair" market value |
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antidumping policies |
designed to punish foreign firms that engage in dumping |
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countervailing duties |
(antidumping duties) which represent a special tariff, can be fairly substantial and stay in place for up to five years |
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infant industry argument |
the oldest economic argument for government intervention |
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smmoth-hawley act |
act that erected a wall of tariff barriers aimed at avoiding rising unemployment by protecting domestic industries and diverting consumer demand away from foreign products |
