exam Flashcards
GDP
Gross Domestic Product
measures the overall health of a nations economy by calculating now many product/services it makes each year
GDP
GDP=
consumption + investment + government spending + (exports - imports)
is an international transformation of commodities, inputs, and technology which promotes welfares in 2 days
foreign trade
aims that the best products are produced and sold in competitive markets
international trade
this theory stated that a countrys wealth was determined by gold and silver
mercantilism - 16th century
theory that encouraged exports and discouraged imports
mercantilism
a situation where the value of the exports are greater than the value of imports
trade surplus
a situation where the value of the imports is greater than the value of exports
trade deficit
GATT
general agreement of tariffs and trade
a series of rules governing trade that were first created in 1947 by 23 countries
GATT
basic principle of GATT
trade should be free and equal
once a benefit was agreed on between 2 countries, it was automatically extended to all other member countries
most favored nation
the end of the GATT and the creation of WTO
trade meetings
it absorbed all of GATTs agreements
WTO
its purpose is to serve as a negotiating forum for member nations to dispute, discuss and debate trade-related matters
WTO
difference between GATT and WTO
GATT was a series of agreements and the WTO was designed to be an actual institution charged with the mission of promoting free and fair trade
biggest change from GATT to WTO
the provision for the settlement of disputes
2 key sectors in which the WTO faces challenges
agriculture and textiles
a tax on imports and exports between countries
tariffs
give a price advantage to locally produced goods over similar goods which are imported
tariffs
levied as a fixed charge per unit or imports
specific tariffs
levied as a fixed percentage of the value of the commodity imported
ad valorem tariff
both specific and ad valorem tariff are levied on the same product simultaneously
two part tariffs
are higher in developing countries and lower in developed countries
average tariffs
has the authority and power to establish contributions to foreign trade in mexico
the federal congress
foreign trade law
ley del comercio exterior
customs law
ley aduanera
general import and export tax law
ley de los impuestos generales de importacion y exportacion
federal law of metrology and standardization
ley federal de metrologia y normalizacion
laws are issued by
the federal order
are the supreme law of the entire union
the constitution, laws and treaties
international treaties in the mexican legal system
political constitution of mexico
ley sobre la celebracion de tratados
ley sobre la aprobacion de tratados internacionales en materia economica
articulos 25, 26, 27 and 28
recognize the care of our financial guarantees
Wihout the Congress consent, the states
cannot establish tonnage duties or any port
duties or taxes on importing or exports
118
Only the Federal Government can tax
imports and exports. The President can be
empowered by the Congress to change
tariffs
131
The Constitution, laws derived from and enacted by the Congress, and all the treaties made by the President with the approval of the Senate, shall be the supreme law of the country
133
regulates unfair foreign
trade practices, investigation procedures, safeguard measures and remedies
foreign trade law
The application and interpretation of foreign trade law correspond to the
federal executive through the ministry of economy
make tariff suggestions to the federal executive
make non tariff regulations suggestions
establish rules of origin
provide solutions to the unfair competition practices in international trade
ministry of economy
can determine preferences regarding tariffs, compensatory quotas,
and other measures
origin of the goods
Non-tariff regulations and
restriction measures could apply in
to ensure the supply of products for population consumption ● when international treaties apply ● to protect flora and fauna
when there
is a tariff depending on
the amount of goods
tariff-quota
are
those related to price
discrimination and
subventions
unfair trade practices
consist on the introduction
of merchandise to the
national territory at a lower
price than its regular value
Price discrimination imports
consist on the introduction
of merchandise to the
national territory at a lower
price than its regular value
Price discrimination imports
The importer must prove the ——–, under the considerations established in the regulations applicable. The
Ministry of Finance and Public Credit (Hacienda) shall be responsible for monitoring and verifying compliance
origin of the goods
any financial contribution that a foreign
government gives to a company for a granted
advantage
subventions
The objective of this law is the regulation of the entrance and exit of goods to national territory, as well as the transportation, customs clearance and any derived fact
customs law
regulate goods
that entry into national territory and
exit from it.
customs law and general tax on import and export
Those who introduce goods into
national territory must provide to customs
authorities, through the electronic system, a
petition with information regarding the goods,
required by SAT. Electronic Signature required.
commercial Invoice
- Bill of Lading
- Non-tariff regulations compliance
- Origin of goods
- Guarantee of Customs Account
- Weight or volume certificate
Tariffs will be charged
according to
the corresponding law for
imports and exports.
Those who import or export should:
-Have inventory control in an automated way
- Provide the information to check the country
of origin of the goods
-Provide customs the documents of value of the
goods
-Be part of the List of Importers of Specific
Sectors by SAT
The taxable base of the
general import tax is
the customs value of goods
When the taxable base can’t be
measured by the value of the goods, then the
next methods would be applied
Transaction value of identical goods
- Transaction value of similar goods
- Determined unit sales price value
- Constructed value of imported goods
- Determined value
is the commercial value of
the goods according to the digital tax
receipt
The tax base of the general
export tax
Foreign goods should count with the
Customs documents proving legal status
can:
Establish or remove border customs
Suspend customs offices services
Authorize or eliminate border regions
customs authorities
will elaborate an act to recognize goods
customs authorities
sources of international trade law in the united states
constitutional law
federal law
international law
the congress in USA can
to regulate commerce with foreign nations
● to lay, collect taxes, duties, imposts, and
excises
● prohibit states for doing the same without
congressional approval
US department of commerce
International Trade Administration
customs system include
customs service and public customs auxiliaries
This is the most basic form of economic cooperation
free trade area
This type provides for economic cooperation as in a free-trade zone.
customs union
has enabled countries to focus on issues that are relevant to their stage of development
as well as encourage trade between neighbors.
regional economic integration
This type allows for the creation of economically integrated markets between member countries.
common market
This type is created when countries enter into an economic agreement to remove barriers to trade
and adopt common economic policies. An example is the European Union (EU)
economic union
These agreements create more opportunities for countries to trade with one another by
removing the barriers to trade and investment
trade creation
advantages of regional economic integration
trade creation
employment opportunities
cinsensus and cooperation
disadvantages of regional economic integration
trade diversion
employment shifts and reductions
loss of national sovereignity
the theory was focused on the ability of a country to produce a good
more efficiently than other nation
absolute advantage
if we want to export we need
origin of the goods q nos da secretaria de economía
quien se encarga de foreign trade law
secretaria de economía
quien se encarga de customs law
SAT secretaría de hacienda
q hace el SAT
collecting taxes and checking documents of merchandise that enters in the county
son cosas diferentes
reglas de origen y certificado de origen
works in hand with all of the industries in the country
secretaria de economía
