Exam 1

Question 1

Protectionism

Answer 1

Trade is dominated by protectionist policies.

Example: 1815 Corn Laws which banned the import of wheat until domestic prices rose to a desirable level

Question 2

Free trade

Answer 2

When countries trade w/out resorting to restrictions in the form of tariffs or non tariff instruments

Question 3

• 1815-1845 in the UK
• Response to Napoleonic Wars
• Meant to protect English farmers from cheap foreign grain
• Eventually raised the price of bread and other goods domestically
• Decreased disposable income of the British

Answer 3

Corn Laws

Question 4

South South Trade

Answer 4

• Trade in developing nations
• Distribution of exports to and among developing nations
• Competition is becoming more intense

Question 5

• Under Queen Elizabeth I
• Incorporated as a royal charter in 1600 (ran for 2 centuries)
• Part trade org. part nation state
• The desire for exotic items such as textiles, jewels and spices
• Larger than many nations at the time

Answer 5

British East India Company

Question 6

Barter Trade

Answer 6

• Exchange of goods or services for other goods or services
• Considered informal by today’s standards, but still occurs.

For example:
• Venezuela gives 50K Barrels of oil to Cuba in exchange for skilled doctors, teachers and advisors

Question 7

Silk Road

Answer 7

• Cotton, sugar, spices, tin, silk
• Destination was to Europe
• Started the exploration period

Question 8

History of trade

Answer 8

• During early civilizations trade routes were along great rivers such as: Tigris, Euphrates, Indus, Nile, Yellow Rivers
• One of the oldest activists undertaken by humans
• Indian Ocean and South China Sea became hubs of the medieval trade networks between the 10th and 15th century
• Powerful global institutions are set up primarily to enhance property rights, minimize protectionism and establish mechanism for the settling of disputes between countries through the World Trade Org (WTO)

Question 9

Reasons for trade

Answer 9

• Lack of resources
• Efficiency
• Access to cheap products

Question 10

Gross domestic product. Measures the amount of goods and services provided in a country in one year

Answer 10

GDP

Question 11

Common index of importance of trade for individual nation or the world

Answer 11

Trade/GDP ratio

Question 12

Part of a country’s balance of payments which tells a country’s value between imports and exports

Answer 12

Balance of Trade

Question 13

Trade data

Answer 13

• 4 types of trade data
  
  • Qualitative
  • Quantitative
  • Policy reports
  • White papers
  • Academic articles

Question 14

Qualitative data

Answer 14

Is data that can be described and questioned with focus groups.

Question 15

Quantitative data

Answer 15

Is data that can be measured and uses numbers and statistics.

Question 16

Policy reports

Answer 16

UN, FAOSTAT, local, national, global orgs.

Question 17

Where can qualitative data be found?

Answer 17

• WTO
• World Bank
• UN
• OECD
• ITA
• TiVA

Question 18

Harmonized Systems

Answer 18

• Also known as, HS.
• Codes that are used through the process of selling goods worldwide
• Administered by the WCO
• Updated every 5 years
• Internationally accepted
• With this code you can use: trade data, conduct market research and complete export transaction
• First 6 digits are the same worldwide usually
• Schedule B code lists restrictions on some exports and for the EEI file (Electronic Export Information)
• Schedule B has 22 sections and 97 chapters
• Chapter 88 used for classification provisions that apply to US exports
• Use Census Bureau to find Schedule B code

Question 19

NPR Podcast review

Answer 19

• 3/4 cargo containers leaving LA are empty
• US had a tariff deficit of $76 billion in June 2021
• Shipping companies charge more for imports than exports
• Sinner sells soybeans about 80% of customers are in Asia
• Imports cost more b/c they are usually technological uses. For example: iPhone