Ch 7 BUS498

  1. General Agreement on Tariffs and Trade (GATT)
    International treaty that committed signatories to lowering barriers to the free flow of goods across national borders and led to the WTO
  2. Tariff
    A tax levied on imports (or exports)
  3. Specific Tariff
    Tariff levied as a fixed charge for each unit of good imported
  4. Ad Valorem Tariff
    A tariff levied as a proportion of the value of an imported good
  5. Subsidy
    Government financial assistance to a domestic producer
  6. Import Quota
    A direct restriction on the quantity of a good that can be imported into a country
  7. Tariff Rate Quota
    Lower tariff rates applied to imports within the quota than those over the quota
  8. Voluntary Export Restraint (VER)
    A quota on trade imposed from the exporting country's side, instead of the importer's; usually imposed at the request of the importing country's government
  9. Quota Rent
    Extra profit producers make when supply is artificially limited by an import quota
  10. Local Content Requirement
    A requirement that some specific fraction of a good be produced domestically
  11. Administrative Trade Policies
    Administrative policies, typically adopted by government bureaucracies, that can be used to restrict imports or boost exports
  12. Dumping
    Selling goods in a foreign market for less than their cost of production or below their "fair" market value
  13. Antidumping Policies
    Designed to punish foreign firms that engage in dumping and thus protect domestic producers from unfair foreign competition
  14. Countervailing Duties
    Antidumping duties
  15. Infant Industry Argument
    New industries in developing countries must be temporarily protected from international competition to help them reach a position where they can compete in world markets with the firms of developed nations
  16. Strategic Trade Policy
    Government policy aimed at improving the competitive position of a domestic industry and/or domestic firm in the world market
  17. Smoot-Hawley Act
    Enacted in 1930 by the U.S. Congress, this act erected a wall of tariff barriers against imports into the United States
Card Set
Ch 7 BUS498
Bus498 Exam 2