International Business - Ch. 7 World Trade Theory

A country might create safety standards for certain products that other nations can't comply with. As a result, these nations can't be involved with exporting parts for those goods and trade does not exist. These safety standards are a form of _____.

Administrative trade policy

______ trade is the economic policy of not discriminating against exports to or imports from foreign countries.

Free

______ is the acronym for the multilateral agreement established in 1947 aimed at the abolition of quotas and the reduction of tariff duties among the contracting nations.

GATT

The nationwide company, Nightingale Health Systems, received a tax break from the government when it was faltering and ready to declare bankruptcy. This subsidy helped the company with production costs and allowed it to have a stronger presence in the competitive health industry. This tax break is a type of _____.

Subsidy

What occurs when a company practices dumping?

The firm is unloading excess production in a foreign market.

What are four main instruments of trade policy?

antidumping duties local content requirements tariffs import quotas

If a country places a 20% tax on dairy products exported to other nations in order to limit exports and have sufficient supplies of dairy products for the home country, it is using a(n) ______.

export tariff

Member nations hoped that the WTO would do which two of the following?

facilitate future trade deals be effective at policing global trade

A government would impose administrative trade policies in order to

make it difficult for imports to enter a country.

The stalled Doha Round has caused many nations to use _____ to foster trade.

multilateral trade agreements

An import _____ is a type of trade restriction that sets a physical limit on the quantity of a product that can be imported into the country in a set period of time.

quota

Taxes placed on imports to protect domestic producers from foreign competition and to produce revenue for the government are called

tariffs