deck_16175445

Question 1

What is FEP?

Answer 1

Foreign Economic Policy: Country’s influence in its total economic relations with other countries, incl. exchange of goods and services, factors of production

Question 2

What is FTP?

Answer 2

Foreign Trade Policy
country’s influence on the exchange of goods and services
currently FEP and FTP are used interchangeably

Question 3

What are the goals of FTP?

Answer 3

government needs to choose prios in econ coop with foreign countries:quant (value of exports imports, balance of payments), qual, improvement of terms of trade; structural economic changes

Question 4

What is the FTP role in building the GDP?

Answer 4

Exchange Rate (ER) x Price (P) x Quantity (Q)

Question 5

What are Terms of Trade?

Answer 5

volume of exports that can be traded for a given volume of imports, changes in the terms of trade are measured by comparing changes in the ratio of export prices to imp prices. the terms of trade are considered to have improved when a given volume of exports can be exchanged for a larger volume of imports

Question 6

What are tarrifs?

Answer 6

fee collected when goods or services cross the country’s borders

Question 7

is the geogr. border always the same as the customs border?

Answer 7

no

Question 8

what is the oldest and most commonly used tool of trade policy?

Answer 8

tariffs

Question 9

what is an ad valorem tariff?

Answer 9

as a percentage of the value of the goods

Question 10

what is an ad spetiem (specific) tariff?

Answer 10

fixed amount for a certain quantitiy of the goods, e.g. 10 Eur per 1 tonne

Question 11

what is compound tariff?

Answer 11

a percentage of the value but not less than a fixed amount for a certain quantity

Question 12

When were the first trades? What were the trade centers? Which inventions were traded?

Answer 12

5k B.C. barter exchange between tribes, trade centers: china, india, egypt, phoenicia, babylon, persia, greece, rome. inventions: money, wheel, weighing and measuring system, commercial law, sails, commodity exchanges

Question 13

When was the silk road?

Answer 13

2BC-15AD

Question 14

When and where was the Amber road?

Answer 14

Europe, 3rd bis 4th

Question 15

what about trade in the middle ages?

Answer 15

lower importance of cities as trade centers, feudal system - lords, vassals and fiefy (and given to a vassal by their lord), decreasing intesity of international trade
trade centers: byzantium, arabia, italian cities (venice, genoa, firenze, pisa), hansa
banking system, bills of exchange, credits for production, trade - big share of products necessary for sailing (sailloth, wood, salt, tar, salt)

Question 16

what is mercantilism?

Answer 16

colonial conquest - the basis
a set of policy guidelines, more export than import, high protectionism against import

Question 17

industrial revolution

Answer 17

significant growth of output
major change in trade volume and commodity structure
first trade patterns ( Europe and its colonies)

Question 18

by who is the theory of absolute advantage and what was it

Answer 18

adam smith, the wealth of nations 1776
it was the first classical theory
simple analysis of the causes of trade patterns
major assumptions: two countries, two goods, no additional trade costs, labour as the only production factor

Question 19

what is the theory of comparative advantage and by who?

Answer 19

by david ricardo, 1817, most influencing classical theory, same assumptions: two countries, two goods, no additional trade costs, labour as the only production factor
what i

Question 20

when was the transportation revolution and what did it mean?

Answer 20

19th century, sea and land steam-powered transportation, goods traded in large volumes, diminishing transportation adn communication costs - soaring trade, new trade patterns ( West- developing countries)

Question 21

Who came up with the factor abundance theory?

Answer 21

E. Hecksher, B. Ohlin, 1930s, two countries- two goods, two production factors: labour and capital, same technology of production, no transportation costs