Robinson exam 2

mehehaji's version from 2017-10-09 23:34


Question Answer
What are the three type of tariffs?specific tariff, ad valorem tariff, compound tariff
What is specific tariff? fixed amount of money per physical unit of product,usually # of product or weight
What is ad valorem tariff? fixed % of value of product
What is compound tariff?uses both specific & ad valorem tariffs
What are nontariff trade barriers ? policies other than tarrifs/tax that restrict trade, dont add price of good, quota,voluntary export resistant
What are the reasons of quotas?not all countries part of WTO, some countries impose a voluntary export resistant
What is VER? voluntary export restriction agreement by a country to limit exports to another country,similar to quota
What are the effects of quotas?limit imports in short run, help domestic industry for short time, with time
What is tariff equivlaent? replacement of quota with tariff that restritcs imports to same level
What is the smoot- hawley tariff act? to protect american jobs and farmers from foreign competetion (1930)
what is GATT ? General agreement on tariffs and Trade, established ground rules for worldwide trade among members
what is the primary purpose of gatt?to reduce trade barriers, particularly tariffs & quotas
what is STA & LTA?Short Term agrrangment, Long Term arrangement
What does short term agreement do?limited imports of cotton
What does long term agreementt do?added other natural fibers
What is MFA?Multifiber Arrangement, added man-made fibers 1974-1994
What is WTO? World trade Organization began in 1994
What is ATC?Agreement on Textiles and clothing
What is the purpose of ATC?to phase out MFA and quota system of textiles and clothing
when did china join the wto?2001
What is safeguards?allows other countries to set limits\
What is a subsidy?a reverse tax, payment from the govt to a company considered unfair
What are the three subsidys?production, government, export
What is production subsidy?negative trade tax, payment to defray costs of production allows unfair adavantage over competitors
What is export subsidy?payment as a reward for exporting goods,rare usually in agriculture
what are price support programs?purchasing and storing products to reduce supply relative to demand to drive up the price
what is effective rate of protection?impact of tariffs on prices paid by consumers
What is dumping?selling product in another country at less than the price it is sold for in home country, or selling it for less than cost of production
What are the types of dumping?cost based, price ased
What is predatory dumping?meant to drive competetion out of business
what is countervailing duty?special tax, increases price of goods to competitive, used to offset subsidy or dumping
what is regionalization?reducing trade barriers in selected geographic regions to facilitate trade, 4 primary regions
What is CBI?Caribbean Basin Initiative
What is government subsidy?a payment from a government to a business to defray business costs
What is unfair competetion? activites defined by legal rulings and statues that protect aganist unethical business practices
what is trading bloc?a group of countires that have created regional trade incentives and that jointly participate in trade negotiations
what is multilateral trade agreements?involve more than 2 countries
What are nontariff trade barriers?restrict trade by some means other than applying a tax on import or export of products

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