Global Markets in Action Flashcards
What are imports?
the goods and services that we buy from other countries.
What are exports
the goods and services we sell to other countries.
What are tariffs
a tax on a good that is imposed by the importing country when an imported good crosses its international boundary.
What are import quotas
a restriction that limits the maximum quantity of a good that may be imported in a given period.
What is the equation of supply with a quota?
S + quota
What is infant industry?
A start up company may need some protection until it becomes more competitive with learning by doing.
What are saving jobs?
Free trade allows outsourcing or Canadian/US multi-nationals to go to countries with lax environmental or safety standards and cheap labor and export back to US or Canada.
What are counteracts dumping?
Dumping occurs when a foreign firm sells its exports at a lower price than its cost of production. Trade barriers prevent dumping
What prevents the exploitation?
Cheap labor and lax environmental standards in foreign countries by the multinationals.
What is national security?
China recently (effective Dec 1, 2020) imposed restrictions on the exports of dual-use (civilian and military) goods) on national security ground. US and other countries also have such export restrictions.
