Macroeconomics

  1. Tariff
    Tax imposed by a nation on an imported good
  2. Revenue Tariff
    designed to produce income for federal government
  3. Protective Tariff
    designed to shield domestic producers from the competition with foreign producers
  4. Import Quota
    A limit imposed by a nation on the quantity (or total value) of goods that may be imported during some period of time
  5. Non-tariff barriers
    • -licensing requirements that is unreasonable or unnecessary bureaucratic red tap
    • -voluntarily increasing tariffs
  6. Effects of Trade barrier against imports (Positives)
    • Positive
    • 1. decline in imports
    • 2. tariff revenue
    • 3. increase production for domestic import
  7. Effects of Trade barrier against imports
    (Negatives)
    • 1. Decline in exports b/c foreign countries increase tariffs as well
    • 2. Decline in consumption
    • Higher cost through lost economies of scale
    • 3. Decreased variety of good
  8. Removing Barriers to Trade
    • WTO
    • GATT (General Agreement on Tariffs and Trade)
Author
dgibson011
ID
215394
Card Set
Macroeconomics
Description
3rd section
Updated