International trade and Access to markets Flashcards
International trade
The exchange of capital, goods and services between nations
Free market
An economic system in which prices are determined by unrestricted competitions between privately owned businesses
Regional trade agreements
Trade agreements between two or more partner countries regarding customs unions and tariffs
G7 countries
The most powerful industrialised countries - US, Japan, Germany, UK, France, Italy and Canada
Trade barrier
A government-imposed restraint on the flow of international goods or services
Tarriff
A tax on imported goods
Protectionism
Comparative advantage
countries specalise in providing goods and services that they excel at producing
Import license
A document issued by a national government authorising the importation of certain goods from a specific sourc e
Import quotas
Quotas set a physical limit restricting the quantity of a particular commodity that can be imported into the country within a specific period of time
Embargoes
The partial or complete prohibition of commerce and trade with a particular country. Usually political reasons rather than commercial
Subsidies
Grants or allowances usually awarded to domestic producers to reduce their costs and make them more competitive against imported goods
Sanctions
Restrictions on exports implemented for political reasons by countries and international organisations to maintain international peace and security
Regulatory or techincal restrictions
Restrictions placed on imports based on obstacles such as quality standards of goods or how they are produced e.g. if child labour is used govt may tariff their imports
