flash cards

Second #Exams

Question Answer
Dumping selling goods in a foreign market below their costs of production or selling goods in a foreign market below their fair market value
Political Arguments The Concerned with protecting the interests of certain group within a nation (normally producers) often at the expense of other group ( normally consumers)
Economic arguments Concerned with boosting the overall wealth of a nation – benefits both producers and consumers
Protecting Jobs the most common political reason for trade restrictions
Retaliation for unfair foreign competition When governments take, or threaten to take spefici actions, other countries may remove trade barriers
Protecting the environment International trade is associated with a decline in environmental quality
The Infant industry argument an industry should be protected until it can develop and be viable and competitive internationally
Strategic trade policy first mover advantages can be important to success
Voluntary Export restraint may limit a firm's ability to serve a country from locations outside that country
Foreign direct Investment (FDI) It occurs when a firm invests directly in new facilities to produce and / or market in a foreign country
Greenfield Investments the establishment of a wholly new operation in a foreign country
The stock of IDS the total accumulated value of foreign owned assets at a given time
Flow of FDI the mount of FDI undertaken over a given time period
Outflows of FDi Outflows of FDI the flow of FDI out of a county
Inflows of FDI the flow of FDI into a country
Gross fixed capital formation the total amount of capital invested in factories, store, office buildings, and the like
Exporting producing goods at home and then shipping them to the receiving country for sale
Multipoint Competition n when two or more enterprises encounter each other in different regional markets national markets, and industries
Radical view the multinational enterprise (MNE) is an instrument of imperialist domination and a tool for exploiting host countries to the exclusive benefit of their capitalist imperialist home countries.

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