International trade Flashcards
what is an import licence
a licence issued by a national government authorising the importation of goods from a specific source
what are import quotas
a physical limit on the quantity of goods that can be imported into the country
what are subsidies
these are grants or allowances usually awarded to domestic producers to reduce their costs and make them more competitive against imports
what are voluntary export restraints
this is a diplomatic strategy offered by the exporting country to appease the importing country and deter it from opposing trade barriers
what are trade embargoes
a partial or complete prohibition of commerce and trade with a particular country. they are usually put into practice for political rather than commercial reasons
what are trade restrictions based on
other import restrictions may be based on technical or regulatory obstacles such as the quality of the goods or the way they were produced eg EU attempt to restrict import of goods produced using child labour
what is free trade
the idea that there are no barriers to trade and it can occur freely between all nations
suggest current barriers to globally free trade currently
trade blocs - encourage trade within the bloc, exclude other countries
global organisations like the UN can put on trade embargoes supply and demand
who are the G7 nations
USA, Japan, Germany, UK, France, Canada and Italy
what percentage of global trade comes from G7 nations
50% (not just goods- also services)
which parts of the world do the most trade
north America, Europe, asia
what do Europe and north America provide to asia and what do asia provide in return
Europe and north America provide services to asia (eg security) whilst asia provide material goods - interdependence
why is asia at an advantage for trade
it is in a geographically beneficial place for trade- middle ground between north America and Europe
how do past and present geopolitics play a role in trade trends
historic agreements- eg north America and Europe trade as they were war allies
trade embargoes- eg no one trades with north korea
do Australia do more inter-regional or regional trade
regional trade- why they are often cut off trade maps
