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11 Cards in this Set
- Front
- Back
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describe free trade
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absence of government intervention
- allows specialization - encourages efficiency |
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describe protectionism
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departure from free trade, designed to give some protection to domestic industries from foreign competition
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what are two types of tariffs/taxes?
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1. specific: a certain price per unit
2. ad valorem: a certain percentage of the price of the good |
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what are two reasons to institute tariffs?
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- protectionism
- revenue |
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what are non-tariff barriers?
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- quantitative restrictions
- import licenses - standards and codes - foreign exchange restrictions |
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what are some arguments for protectionism?
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- self-sufficient/strategic industries
- diversification for stability - infant industry - present unfair competitions - protect domestic jobs |
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what is dumping?
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selling in a foreign market below cost
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when was GATT created?
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- post WWII
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what did GATT succeed at, and what did if fail at?
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GATT succeed at reducing tariffs and liberalizing trade
GATT failed at attempting to remove Non-Tariff Barriers |
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what organization superseded GATT?
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the world trade organization
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when was the EU created?
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in the 1950s
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