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Tariff
Tax imposed by a nation on an imported good
Revenue Tariff
designed to produce income for federal government
Protective Tariff
designed to shield domestic producers from the competition with foreign producers
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
Non-tariff barriers
-licensing requirements that is unreasonable or unnecessary bureaucratic red tap
-voluntarily increasing tariffs
Effects of Trade barrier against imports (Positives)
Positive
1. decline in imports
2. tariff revenue
3. increase production for domestic import
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
Removing Barriers to Trade
WTO
GATT (General Agreement on Tariffs and Trade)
Author
dgibson011
ID
215394
Card Set
Macroeconomics
Description
3rd section
Updated
2013-04-24T02:22:23Z
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