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19 Cards in this Set
- Front
- Back
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Free trade
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The absence of barriers to the free flow of goods and services between countries
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Tariff
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Is a tax levied on imports or exports
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Specific Tariff
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a tariff levied as a fixed charge for each unit of good imported
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Ad Valorem Tariff
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A tariff levied as a proportion of the value of an imported good
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Subsidy
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a payment made by the government to producers of a good or service, which is intended to lower their costs
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import quota
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a direct restriction on the quantity of a good that can be imported into a country
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tariff rate quota
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lower tariff rates applied to imports within the quota than those over the quota
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voluntary export restraint (VER)
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a quota on trade imposed from the exporting country's side, instead of the importer's; usually imposed at the request of the importing country's government
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quota rent
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extra profit producers make when supply is artificially limited by an import quota
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local content requirement
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a requirement that some specific fraction of a good be produced domestically
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administrative trade policies
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administrative policies, typically adopted by government bureaucracies, that can be used to restrict imports or boost exports
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dumping
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Selling goods in a foreign market for less than their cost of production or below their "fair" market value
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antidumping policies
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Design to punish foreign firms that engage in dumping and thus protect domestic producers from unfair foreign competition
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countervailing duties
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antidumping duties
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Helms-Burton Act
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Act passed in 1996 that allowed Americans to sue foreign firms that use Cuban property confiscated from them after the 1959 revolution
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D'Amato Act
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Act passed in 1996, similar to the Helms-Burton Act, aimed at Libya and Iran
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infant industry argument
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New industries in developing countries must be temporarily protected from international competition to help them reach a position where they can compete on world markets with the firms of developed nations
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strategic trade policy
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Government policy aimed at improving the competitive position of a domestic industry and/or domestic firm in the world market
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Smoot-Hawley Act
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Enacted in 1930 by the U.S. Congress, this act erected a wall of tariff barriers against imports into the United States
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