Lecture #6 Flashcards
What is the main type of direct quantity limiters?
quotas
What is a quota?
putting a limit on the quantity of a product that can be exported or imported in a given time frame
What are the different types of quotas?
- voluntary export restraint (VER)
- embargoes (won’t accept anything)
What are the other types of quantity limiters?
- “buy local” legislation
- specific permission requirements
- –import or export license
- standards and labels
- administrative delays
- reciprocal requirements
- –countertrade or offsets
- restrictions on services
trade restrictions affect _________ as well as ___________ and ____________
services as well as manufactured and agricultural products
countries deciding whether to restrict trade in services consider _________, _________, _________, and _________
essentiality, not-for-profit-preference, standards, and immigration
companies facing import competition can:
4 things
– Move abroad
– Seek other market niches
– Create greater efficiency or superior products
– Try to get governmental protection
Can companies be guaranteed the ability to shift production to another location or find new suppliers?
no It is not always possible
What can the development of an int’l strategy of trade do to help companies?
can help determine whether a company will benefit more from protectionist measures or from some other
method of countering foreign competition
strategies for dealing with import competition include:
3 things
–Convince decision makers of the merits of particular policies
– Involve the industry and stakeholders
– Prepare for changes in the competitive environment
What are the different ways of looking at the WTO?
– It is an organization for trade opening
– It is a forum for governments to negotiate trade agreements
– It is a place for them to settle trade disputes
– It operates a system of trade rules
the WTO is a place where member governments _____________
try to sort out the trade problems they face
with each other
