GMS522 Midterm Test | Verified Q&A’s| Latest
infant industry argument - ✔✔-nascent industries exposed to international
competition too early in their development are unlikely to become major global players
-government must shield these companies from direct competition
Employment argument - ✔✔the government should maintain employment levels by
keeping foreign products out of the domestic market
National security argument - ✔✔governments should restrict trade and investment
that may pose a national security risks to its citizens
Forms of protectionism - ✔✔-tariffs
-quota
-exchange controls
-restricting access to local distribution
-product standards
-lack of intellectual property protection
-investment barriers
Tariffs - ✔✔a tax imposed by a national government on a product that is traded
internationally
quota - ✔✔a quantitative restriction on imports
exchange controls - ✔✔limits on the amount of foreign currency importers can
purchase or by setting a favourable exchange rate for exports and an unfavourable rate
for imports
, Restricting access to local distribution - ✔✔government puts in place regulations that
make it difficult for the foreign firm to reach its desired customers and gain traction in
the market
product standards - ✔✔imposition of unreasonable quality standards on imported
products
lack of intellectual property protection - ✔✔-government fails to guarantee that a
foreign firm's intellectual property rights will be legally protected in the country
Investment barriers - ✔✔government imposes restrictions on foreign ownership of
certain industries such as financial services, defence contracting and air transportation
Market intelligence - ✔✔government provides timely and accurate information on
foreign makrets
export subsidies - ✔✔reduce the cost of foreign market entry for the firm, making it
more competitive in global markets
export financing - ✔✔government provides local firms with direct loans, loan
guarantees and credit insurance
foreign trade zones - ✔✔a defined geographic area within a country within which
firms receive preferential treatment for their imports of raw materials and component
parts and the exports of their final products
World trade organization - ✔✔responsible for all existing trade agreements
negotiated under GATT and provides a forum for all multilateral trade negotiations. The
infant industry argument - ✔✔-nascent industries exposed to international
competition too early in their development are unlikely to become major global players
-government must shield these companies from direct competition
Employment argument - ✔✔the government should maintain employment levels by
keeping foreign products out of the domestic market
National security argument - ✔✔governments should restrict trade and investment
that may pose a national security risks to its citizens
Forms of protectionism - ✔✔-tariffs
-quota
-exchange controls
-restricting access to local distribution
-product standards
-lack of intellectual property protection
-investment barriers
Tariffs - ✔✔a tax imposed by a national government on a product that is traded
internationally
quota - ✔✔a quantitative restriction on imports
exchange controls - ✔✔limits on the amount of foreign currency importers can
purchase or by setting a favourable exchange rate for exports and an unfavourable rate
for imports
, Restricting access to local distribution - ✔✔government puts in place regulations that
make it difficult for the foreign firm to reach its desired customers and gain traction in
the market
product standards - ✔✔imposition of unreasonable quality standards on imported
products
lack of intellectual property protection - ✔✔-government fails to guarantee that a
foreign firm's intellectual property rights will be legally protected in the country
Investment barriers - ✔✔government imposes restrictions on foreign ownership of
certain industries such as financial services, defence contracting and air transportation
Market intelligence - ✔✔government provides timely and accurate information on
foreign makrets
export subsidies - ✔✔reduce the cost of foreign market entry for the firm, making it
more competitive in global markets
export financing - ✔✔government provides local firms with direct loans, loan
guarantees and credit insurance
foreign trade zones - ✔✔a defined geographic area within a country within which
firms receive preferential treatment for their imports of raw materials and component
parts and the exports of their final products
World trade organization - ✔✔responsible for all existing trade agreements
negotiated under GATT and provides a forum for all multilateral trade negotiations. The
