AGB 302AGB
Ch 7.pdf~~~~~~~~~~~~~~~~~~~~~~~~!!!!!!!_(*))))))))))))))))))*@&^#(&^~&*@&*&!~&*@((*~~~~~~~~~~~~~~~~~~~~~~~~~~~~
302AGB
Ch 7.pdf~~~~~~~~~~~~~~~~~~~~~~~~!!!!!!!_(*))))))))))))))))))*@&^#(&^~&*@&*&!~&*@((*~~~~~~~~~~~~~~~~~~~~~~~~~~~~
302 Ch 7.pdf~~~~~~~~~~~~~~~~~~~~~~~~!!!!!!!_(*))))))))))))))))))*@&^#(&^~&*@&*&!~&*@((*~~~~~~~~~~~~~~~~~~~~~~~~~~~~
AGB 302 Ch 7 AGB 302 Ch 7
Study online at https://quizlet.com/_89t7hu
1. Free Trade refers to a situation in which a government does not attempt to restrict what its
citizens can buy from or sell to another country
2. General Agreement creations of a series of multinational treaties; predecessor of WTO; the emer-
on Tariffs and Trade gence of the modern international trading system is based on this
(GATT)
3. Tariff a tax levied on imports (or exports)
4. Specific Tariffs levied as a fixed charge for each unit of a good imported (e.g., $3 per barrel of
oil)
5. Ad valorem tariffs are levied as a proportion of the value of the imported good
6. Subsidy a government payment to a domestic producer; take many forms, including
cash grants, low-interest loans, tax breaks, and government equity participation
in domestic firms
7. Import Quota a direct restriction on the quantity of some good that may be imported into a
country; the restriction is usually enforced by issuing import licenses to a group
of individuals or firms
8. Tariff Rate Quota a lower tariff rate is applied to imports within the quota than those over the
quota. For example, an ad valorem tariff rate of 10 percent might be levied on
1 million tons of rice imports into South Korea, after which an out-of-quota rate
of 80 percent might be applied.
9. Voluntary Export is a quota on trade imposed by the exporting country, typically at the request of
Restraint (VER) the importing country's government. For example, in 2012 Brazil imposed what
amounts to voluntary export restraints on shipments of vehicles from Mexico to
Brazil.
10. Quota Rent The extra profit that producers make when supply is artificially limited by an
import quota
1
1/5
AGB 302AGB
Ch 7.pdf~~~~~~~~~~~~~~~~~~~~~~~~!!!!!!!_(*))))))))))))))))))*@&^#(&^~&*@&*&!~&*@((*~~~~~~~~~~~~~~~~~~~~~~~~~~~~
302AGB
Ch 7.pdf~~~~~~~~~~~~~~~~~~~~~~~~!!!!!!!_(*))))))))))))))))))*@&^#(&^~&*@&*&!~&*@((*~~~~~~~~~~~~~~~~~~~~~~~~~~~~
302 Ch 7.pdf~~~~~~~~~~~~~~~~~~~~~~~~!!!!!!!_(*))))))))))))))))))*@&^#(&^~&*@&*&!~&*@((*~~~~~~~~~~~~~~~~~~~~~~~~~~~~
, AGB 302AGB
Ch 7.pdf~~~~~~~~~~~~~~~~~~~~~~~~!!!!!!!_(*))))))))))))))))))*@&^#(&^~&*@&*&!~&*@((*~~~~~~~~~~~~~~~~~~~~~~~~~~~~
302AGB
Ch 7.pdf~~~~~~~~~~~~~~~~~~~~~~~~!!!!!!!_(*))))))))))))))))))*@&^#(&^~&*@&*&!~&*@((*~~~~~~~~~~~~~~~~~~~~~~~~~~~~
302 Ch 7.pdf~~~~~~~~~~~~~~~~~~~~~~~~!!!!!!!_(*))))))))))))))))))*@&^#(&^~&*@&*&!~&*@((*~~~~~~~~~~~~~~~~~~~~~~~~~~~~
AGB 302 Ch 7 AGB 302 Ch 7
Study online at https://quizlet.com/_89t7hu
11. Export Tariff a tax placed on the export of a good; goal is to discriminate against exporting
in order to ensure that there is sufficient supply of a good within a country. For
example, in the past, China has placed one on the export of grain to ensure
that there is sufficient supply in China.
12. Export Ban a policy that partially or entirely restricts the export of a good. One
well-known example was the ban on exports of U.S. crude oil production that
was enacted by Congress in 1975
13. local content re- a requirement that some specific fraction of a good be produced domestically.
quirement (LCR) The requirement can be expressed either in physical terms (e.g., 75 percent of
component parts for this product must be produced locally) or in value terms
(e.g., 75 percent of the value of this product must be produced locally)
14. Administrative are bureaucratic rules designed to make it difficult for imports to enter a
trade policies country. It has been argued that the Japanese are the masters of this trade
barrier.
15. Dumping variously defined as selling goods in a foreign market at below their costs of
production or as selling goods in a foreign market at below their "fair" market
value
16. Antidumping Poli- are designed to punish foreign firms that engage in dumping. The ultimate
cies objective is to protect domestic producers from unfair foreign competition
17. countervailing du- antidumping duties (or special tariff) imposed on foreign firms that engage in
ties dumping practices.
18. infant industry ar- by far the oldest economic argument for government intervention. Alexander
gument Hamilton proposed it in 1792; governments should temporarily support new
industries (with tariffs, import quotas, and subsidies) until they have grown
strong enough to meet international competition
2
2/5
AGB 302AGB
Ch 7.pdf~~~~~~~~~~~~~~~~~~~~~~~~!!!!!!!_(*))))))))))))))))))*@&^#(&^~&*@&*&!~&*@((*~~~~~~~~~~~~~~~~~~~~~~~~~~~~
302AGB
Ch 7.pdf~~~~~~~~~~~~~~~~~~~~~~~~!!!!!!!_(*))))))))))))))))))*@&^#(&^~&*@&*&!~&*@((*~~~~~~~~~~~~~~~~~~~~~~~~~~~~
302 Ch 7.pdf~~~~~~~~~~~~~~~~~~~~~~~~!!!!!!!_(*))))))))))))))))))*@&^#(&^~&*@&*&!~&*@((*~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Ch 7.pdf~~~~~~~~~~~~~~~~~~~~~~~~!!!!!!!_(*))))))))))))))))))*@&^#(&^~&*@&*&!~&*@((*~~~~~~~~~~~~~~~~~~~~~~~~~~~~
302AGB
Ch 7.pdf~~~~~~~~~~~~~~~~~~~~~~~~!!!!!!!_(*))))))))))))))))))*@&^#(&^~&*@&*&!~&*@((*~~~~~~~~~~~~~~~~~~~~~~~~~~~~
302 Ch 7.pdf~~~~~~~~~~~~~~~~~~~~~~~~!!!!!!!_(*))))))))))))))))))*@&^#(&^~&*@&*&!~&*@((*~~~~~~~~~~~~~~~~~~~~~~~~~~~~
AGB 302 Ch 7 AGB 302 Ch 7
Study online at https://quizlet.com/_89t7hu
1. Free Trade refers to a situation in which a government does not attempt to restrict what its
citizens can buy from or sell to another country
2. General Agreement creations of a series of multinational treaties; predecessor of WTO; the emer-
on Tariffs and Trade gence of the modern international trading system is based on this
(GATT)
3. Tariff a tax levied on imports (or exports)
4. Specific Tariffs levied as a fixed charge for each unit of a good imported (e.g., $3 per barrel of
oil)
5. Ad valorem tariffs are levied as a proportion of the value of the imported good
6. Subsidy a government payment to a domestic producer; take many forms, including
cash grants, low-interest loans, tax breaks, and government equity participation
in domestic firms
7. Import Quota a direct restriction on the quantity of some good that may be imported into a
country; the restriction is usually enforced by issuing import licenses to a group
of individuals or firms
8. Tariff Rate Quota a lower tariff rate is applied to imports within the quota than those over the
quota. For example, an ad valorem tariff rate of 10 percent might be levied on
1 million tons of rice imports into South Korea, after which an out-of-quota rate
of 80 percent might be applied.
9. Voluntary Export is a quota on trade imposed by the exporting country, typically at the request of
Restraint (VER) the importing country's government. For example, in 2012 Brazil imposed what
amounts to voluntary export restraints on shipments of vehicles from Mexico to
Brazil.
10. Quota Rent The extra profit that producers make when supply is artificially limited by an
import quota
1
1/5
AGB 302AGB
Ch 7.pdf~~~~~~~~~~~~~~~~~~~~~~~~!!!!!!!_(*))))))))))))))))))*@&^#(&^~&*@&*&!~&*@((*~~~~~~~~~~~~~~~~~~~~~~~~~~~~
302AGB
Ch 7.pdf~~~~~~~~~~~~~~~~~~~~~~~~!!!!!!!_(*))))))))))))))))))*@&^#(&^~&*@&*&!~&*@((*~~~~~~~~~~~~~~~~~~~~~~~~~~~~
302 Ch 7.pdf~~~~~~~~~~~~~~~~~~~~~~~~!!!!!!!_(*))))))))))))))))))*@&^#(&^~&*@&*&!~&*@((*~~~~~~~~~~~~~~~~~~~~~~~~~~~~
, AGB 302AGB
Ch 7.pdf~~~~~~~~~~~~~~~~~~~~~~~~!!!!!!!_(*))))))))))))))))))*@&^#(&^~&*@&*&!~&*@((*~~~~~~~~~~~~~~~~~~~~~~~~~~~~
302AGB
Ch 7.pdf~~~~~~~~~~~~~~~~~~~~~~~~!!!!!!!_(*))))))))))))))))))*@&^#(&^~&*@&*&!~&*@((*~~~~~~~~~~~~~~~~~~~~~~~~~~~~
302 Ch 7.pdf~~~~~~~~~~~~~~~~~~~~~~~~!!!!!!!_(*))))))))))))))))))*@&^#(&^~&*@&*&!~&*@((*~~~~~~~~~~~~~~~~~~~~~~~~~~~~
AGB 302 Ch 7 AGB 302 Ch 7
Study online at https://quizlet.com/_89t7hu
11. Export Tariff a tax placed on the export of a good; goal is to discriminate against exporting
in order to ensure that there is sufficient supply of a good within a country. For
example, in the past, China has placed one on the export of grain to ensure
that there is sufficient supply in China.
12. Export Ban a policy that partially or entirely restricts the export of a good. One
well-known example was the ban on exports of U.S. crude oil production that
was enacted by Congress in 1975
13. local content re- a requirement that some specific fraction of a good be produced domestically.
quirement (LCR) The requirement can be expressed either in physical terms (e.g., 75 percent of
component parts for this product must be produced locally) or in value terms
(e.g., 75 percent of the value of this product must be produced locally)
14. Administrative are bureaucratic rules designed to make it difficult for imports to enter a
trade policies country. It has been argued that the Japanese are the masters of this trade
barrier.
15. Dumping variously defined as selling goods in a foreign market at below their costs of
production or as selling goods in a foreign market at below their "fair" market
value
16. Antidumping Poli- are designed to punish foreign firms that engage in dumping. The ultimate
cies objective is to protect domestic producers from unfair foreign competition
17. countervailing du- antidumping duties (or special tariff) imposed on foreign firms that engage in
ties dumping practices.
18. infant industry ar- by far the oldest economic argument for government intervention. Alexander
gument Hamilton proposed it in 1792; governments should temporarily support new
industries (with tariffs, import quotas, and subsidies) until they have grown
strong enough to meet international competition
2
2/5
AGB 302AGB
Ch 7.pdf~~~~~~~~~~~~~~~~~~~~~~~~!!!!!!!_(*))))))))))))))))))*@&^#(&^~&*@&*&!~&*@((*~~~~~~~~~~~~~~~~~~~~~~~~~~~~
302AGB
Ch 7.pdf~~~~~~~~~~~~~~~~~~~~~~~~!!!!!!!_(*))))))))))))))))))*@&^#(&^~&*@&*&!~&*@((*~~~~~~~~~~~~~~~~~~~~~~~~~~~~
302 Ch 7.pdf~~~~~~~~~~~~~~~~~~~~~~~~!!!!!!!_(*))))))))))))))))))*@&^#(&^~&*@&*&!~&*@((*~~~~~~~~~~~~~~~~~~~~~~~~~~~~
