front 1 who absorbs the costs of subsidies? | back 1 consumers |
front 2 A direct restriction on the quantity of some good that may be imported into a country | back 2 import quota |
front 3 A hybrid of a quota and a tariff where a lower tariff is applied to imports within the quota than to those over the quota | back 3 tariff rate quota |
front 4 Quota on trade imposed by the exporting country, typically at the request of the importing country's government | back 4 Voluntary export restraint (VER) |
front 5 Give and example of a VER | back 5 Japan agreed to a restriction of 2000 vehiclees per year in the US and when it was released, the US consumers realized their need for hondas and sales boosted drastically |
front 6 a tax placed on the export of a good | back 6 export tariff |
front 7 a policy that partially or entirely restricts the export of a good | back 7 export ban (Ban of exports of US crude oil to ensure a sufficient supply of domestic oil at home) |
front 8 demands that some specific fraction of a good be produced domestically | back 8 local content requirement |
front 9 bureaucratic rules that are designed to make it difficult for imports to enter a country | back 9 administrative trade policies |
front 10 __________ polices hurt consumers by denying access to possibly superior foreign products | back 10 administrative trade |
front 11 selling goods in a foreign market below their cost of production, or selling goods in a foreign market at below their "fair" market value | back 11 dumping |
front 12 example of dumping | back 12 China subsidizes auto parts industry and dumps steel |
front 13 U.S. firms that believe a foreign firm is dumping can file a complaint with the? | back 13 WTO |
front 14 WTO succeeded | back 14 GATT |
front 15 Reciprocal trade agreements between two or more partners. Agreements are designed to capture gain from trade beyond those agreements currently attainable under WTO treaties | back 15 Multilateral and bilateral trade agreements |
front 16 trade barriers impact _______ _________. They raise the costs of ? | back 16 firm strategy; exporting |
front 17 What are the 5 levels of integration? | back 17 1. free trade - no barriers (tariffs, quotas) |
front 18 the amount of FDI undertaken over a given time period | back 18 1. flow of FDI |
front 19 is the world's largest foreign investor and the largest recipient of foreign investment | back 19 America |
front 20 once a company owns 10% of a foreign entity, they have? | back 20 FDI |
front 21 Flow and stock of FDI in the world economy have ___________ over the last 25 years FDI flow has grown more rapidly than world _______ and world _________ | back 21 increased; trade; output |
front 22 Historically FDI has been directed at ___________ nations and now it is directed at ____________ nations | back 22 developed; developing |
front 23 a way to bypass gov't intervention | back 23 FDI |
front 24 FDI will be favored over exporting when | back 24 Transportation costs and trade barriers are high |
front 25 FDI will be favored over licensing when: | back 25 1. The firm wants control over its technological know-how and
operations and business strategy |
front 26 Benefits to host country | back 26 1. resource effects - supplying capital, technology and management
resources that would otherwise not be available |
front 27 Costs of host country | back 27 adverse effects on competition within the host nation, adverse effects on the balance of payments, and the perceived loss of national sovereignty and autonomy |
front 28 Home Country benefits | back 28 1. res. transf effects - gains valuable skills |
front 29 Home Country Costs | back 29 the adverse balance-of-payments and adverse employment effects of outward FDI. |
front 30 Free flow of goods and services improves all nations | back 30 regional integration |
front 31 pros of integration (economic) | back 31 1. postive sum game |
front 32 high-cost local producers with low-cost free-trade regional producers | back 32 trade creation |
front 33 low-cost external trade partners replaced with high-cost, free-trade regional producers` | back 33 trade diversion |
front 34 cons of integration (economic) | back 34 trade diversion and loss of monetary policy |
front 35 political factor pros of integration | back 35 Greater cooperation between neighbors reduces the possibility of
war/conflicts |
front 36 political factor cons of integration | back 36 National sovereignty is lost. |
front 37 what is the most complete example of regional economic integration? | back 37 The EU |
front 38 The EU began as a? | back 38 coal and steel community after attempting ot rebuild after WWII |
front 39 The EU began as a ________, which formed in ___________ through the _________ and changed its name to _______ | back 39 European Community; 1957; Treaty of Rome; EU |
front 40 what established a single market for the EU | back 40 Single European Act |
front 41 What Established a common currency - the euro in 1990? | back 41 Maastricht treaty |
front 42 was the last country to join the EU in 2013. | back 42 Croatia |
front 43 What are the 4 components of the EU structure? | back 43 1. European Commission |
front 44 Proposing legislation and implementing, monitoring compliance of EU legislation. How many members? | back 44 european comission; 27 commisioners |
front 45 Passes legislation from the commission into law | back 45 European council |
front 46 Debate and propose amendments to Council passed law. Where is it located? How many members? | back 46 European parliament; Strasbourg France; 732 |
front 47 Supreme appeals court for EU law. There is one judge from each? | back 47 Court of Justice; member state |
front 48 all the countries who have already switched to the Euro | back 48 Euro Zone (19 countries) |
front 49 What is the first and second largest currencies in the world? | back 49 1. the dollar |
front 50 Over the last two decades, the dollar to Euro exchange rate has experienced a lot of volatility which indicates various political, economic, and legal facotrs. Peak for the euro was in 2008. This means it is _________ ___________ for Americans in the EU because the Euro is stronger | back 50 more expensive |
front 51 Benefits of Euro | back 51 - Saved tons of money in Bank Exchange Fees (45
billion) |
front 52 Costs of Euro | back 52 1. Loss of Monetary Policy (not Denmark, Sweden)• |
front 53 Britain exited EU because? | back 53 not comfortable with loss of national sovereignty |
front 54 The vote for Britain leaving was a very __________ vote | back 54 close |
front 55 Greece has been struggling to be productive. _______ keeps bailing them out | back 55 IMF |
front 56 phasing out and replaced with USMCA - regional integration between Mexico, Canada, and USA. | back 56 NAFTA |
front 57 consequences of NAFTA | back 57 Jobs were lost since labor is cheaper in Mexico forcing them to migrate to US |
front 58 Which countries make up CAFTA? | back 58 Costa Rica, Nicaragua, El Salvador, Honduras, Guatemala and Dominican Republic AND the USA |
front 59 Which countries make up Mercosur? They cannot trade with countries _____________ | back 59 Argentina, Brazil, Paraguay, Uruguay, and Venezuela; outside of Mercsour |