Trade Barriers

Question 1

tariff

Answer 1

tax levied against imported goods.

Question 2

Revenue Tariffs

Answer 2

taxes designed to raise funds for the importing government,

Question 3

Protective Tariffs

Answer 3

taxes designed to raise the retail price of an imported product to match or exceed that of a similar domestic product.

Question 4

Dumping

Answer 4

selling a product in foreign markets are a price cheaper than goods at the domestic market.

Question 5

Import Quotas

Answer 5

trade restrictions limiting the number of units of certain goods that can enter into a country for resale.

Question 6

Embargo

Answer 6

bans specific product imports

Question 7

NAFTA

Answer 7

North American Free Trade Agreement. removes trade restrictions between canada, US, mexico

Question 8

franchise

Answer 8

contractual agreement. Retailer must meet operation requirements of a manufacturer or other franchiser.

Question 9

foreign licensing

Answer 9

agreement that grants foreign marketers the right to distribute and use patents/trademarks in a specified area.

Question 10

subcontracting

Answer 10

contractual agreements that assign the production of goods or services to local or smaller firms.