flash cards

First #301

Question Answer
Pragmatic Nationalism FDI has both benefits (inflows of capital,technology, skill and jobs) and costs
Paul krugman argues that strategic trade policies aimed at establishing domestic firms in a dominant position in a global industry are beggar neighbor policies that boost national income at the expense of other countries
Common Market has no barrier to trade between member countries, a common external trade policy, and the free movement of the factors of production
Free Trade u Occurs when governments do not attempt to restrict what citizens can buy from another country or what they can sell to other country.
Tariffs Taxes levied on imports that effectively raise the cost of imported products relative to domestic products
Specific tarrifs levied as a fixed charge for each unit of a good imported
Ad varolem tariffs Levies as a proportion of the value of the imported goods
Subsidies government payments to domestic producers
Import Quotas Restrict the quantity of some good that may be imported into a county
Tarrif rate quotas A hybrid of a quota and a tariff where a lower tariff is applied to import within the quota than to those over the quota
Quota Rent The extra profit that producers make when supply is artificially limited by an import quota
Voluntary Export Restraints Quotas on trade imposed by the exporting country typically at the request of the importing country government
Local Content Requirements demand that some specific fraction of a good be produced domestically
Administrative Policies Bureaucratic rules designed to make it difficult for import to enter a country

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