Trade Flashcards
What is meant by the term ‘protectionism’?
A policy by government to impose restrictions on trade in goods and services with other countries.
What is a tariff?
a tax imposed on imports
What are quotas?
government imposed limits on the number of goods that can be imported into a country
What is a subsidy?
financial assistance to a business by government to make it competitive or prevent collapse
What are barriers to trade?
any regulation or policy that restricts international trade
What is the difference between NAFTA and the EU?
- EU has shared economic policies
- EU has free movement across borders
What are tariffs an example of?
protectionism
What does SDT stand for?
special differential treatment
Who offers SDTs? To whom?
WTO, lesser developed nations, that face significant barriers to trade
Why might SDTs be needed?
protectionist policies after decolonialisation impact poorer countries
How might the WTO implement SDTs?
- longer time periods for agreements
- safeguarding trade interests
- support to help countries develop capacity to trade
What countries are a part of Mercosur?
Brazil, Paraguay, Venezuela, Argentina
What countries are part of the Pacific Alliance?
Mexico, Colombia, Chile, Peru
What is a trade bloc?
a group of countries that promote trade by reducing or eliminating potential barriers
What is the aim of the belt and road initiative?
connect trade routes all over the world
Give an example of china’s investment into Africa
Kenya –> received FDI to help develop railway infrastructure
How could China’s investment in Africa cause unequal flows?
- create debt traps
- soft power
- investment into some countries may leave other behind
- Chinese workers
How could China’s investment in Africa solve unequal flows?
- increase trade
- money went to energy project -> development
What is free trade?
international trade without barriers
Approximately how much has China spent on the BRI?
$1trillion
How could the BRI lead to recession?
- loans need to be paid back
- money might need to come from tax if not enough is earned
- if cant: accepts collateral, prevents ability to borrow internationally
Give an example of a time the BRI was unsuccessful?
Myanmar
planned to force peasants off land
protests
How many defects found by Uganda’s power generation company in a Chinese built power station?
over 500
Who do China trade most with within the EU?
France and Germany
non-BRI members
How much (approximately) did China invest in Kenya as part of the BRI?
$5bn
When did the BRI launch?
2013
