International Economics Flashcards
Recent Tariffs
The EU and Canada announced retaliatory tariffs on US goods, worth $28bn and $21bn respectively, in response to the US imposing 25% steel and aluminium tariffs. The UK government said it would not immediately impose retaliatory tariffs The US reversed an additional 25% tariff proposal on Canadian steel and aluminium imports, while the Canadian province of Ontario reversed plans to impose a 25% surcharge on power exports to the US
* US president Donald Trump threatened to impose 200% tariffs on imports of alcohol from the EU in retaliation to the EU’s import duties on US whiskey
In a sign that a weakening stock market and uncertainty about government spending and trade policy is taking a toll, US consumer confidence fell to its lowest level since November 2022, with long-term inflation expectations hitting a 32-year high. Consumer confidence among Democrat voters fell to the lowest level ever recorded, including during the financial crisis in 2008-09
Define international competitiveness + provide measures for increasing it
external competitiveness is the sustaines ability to sell goods and services profitably at competitive prices in a foreign country
R&D:
Subsidising domestic producers and consumers
Evaluate drawbacks of being part of a trading bloc
What is a managed exchange rate and why is it used?
When the exchange rate is kept between a cap and floor and not allowed to exceed those. It is not fixed to one value and can fluctuate slightly between two fixed values.
Case Study: Africa’s Volatile Terms of Trade
