Trade
Type of trade between nations without barriers.
What is Free trade?
These can be a source of revenue for the government.
What are protection laws?
Companies are less innovative and less efficient leading increased costs of production.
What is the lack of competition?
Government provides payments or decrease taxes for domestic companies to increase their supply and therefore decrease the demand for foreign goods.
What are Subsidies?
Trade between two nations.
What is international trade?
These are kept out in order to help protect domestic jobs.
What is foreign competition?
The thing Latvia put up to decrease Ukrainian imports?
What is a trade barrier?
A tax on imports. It decreases the supply of foreign goods by making them expensive.
What are Tariffs.
Countries pay less for resources that otherwise would cost more with trade barriers.
What is Lower prices?
Protection laws help with overcoming these
What is the balance of payment deficit?
When the highest power of Latvia does this they mess up their market and misrepresent it.
What is government meddling?
A bureaucratic barrier of rules and regulations take a lot of effort for companies to pass and may discourage firms from trading.
What is an Administrative barrier?
There are more people to sell to.
What is Increased market size?
They are protected from being overrun by foreign companies.
What are infant industries?
Ukraine does this because they get angry at Latvia because of their own trade barriers.
What is retaliation?
A complete ban on trade between the two nations, with no benefits for the consumer.
What is an Embargo
Firms focus on improving the quality and or quality of their goods, to be more internationally competitive.
What is Efficiency gains?
When a country inserts excess and cheap products into another nations economy.
What is product dumping?
This country borders Estonia, Lithuania and Russia. It is also good at Basketball.
What is Latvia?
A limit of a type of foreign good. Sets a max limit to prevent too many foreign goods.
What is a quota?