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19 Cards in this Set
- Front
- Back
Free Trade
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The absence of government barriers to the free flow of goods and services between countries.
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Tariff
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A tax levied on imports.
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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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Government financial assistance to a domestic producer.
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Import Quota
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A direct restriction on the quantity of some good that may be imported into a country.
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Tariff Rate Quota
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The process of applying a lower tariff rate 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 by the exporting country, typically at the request of the importing country's government.
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Quota Rent
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The 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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Bureaucratic rules designed to make it difficult for imports to enter a country.
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Dumping
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Selling goods in a foreign market at below their costs of production or below their "fair" market value.
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Antidumping Policies
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Policies designed 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 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 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 tariff erected a wall of barriers against imports into the United States.
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