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4 Cards in this Set
- Front
- Back
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What 5 non-tariff trade barriers exist? |
- Persistent Dumping - Predatory Dumping - Sporadic Dumping - International Cartel - Voluntary Export Restraint |
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Which is most effective for terms of trade: free trade, tariff, or subsidies? Graph and describe the outcome of each to illustrate their effects. |
Subsidies are most effective (See Graph) |
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What is the downside to only producing for exports? How will diversification be better for a country? |
Disadvantages Of Export Only: - financial management - strain on resources - exchange rate fluctuation - misinformed customer demand They will be able to benefit from balanced trade with other economies which might have a surplus in a particular commodity |
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What are some arguments for protectionism? And, in what ways must they be qualified? |
Infant Industry Argument Qualifications: - argument is more justified for developing nations than industrial ones - difficult to identify which industry qualifies for treatment - what trade protection can do, a production subsidy to the infant industry can do better |
