Show:
Government Intervention
Government Intervention
Countertrade
Nations
Regional Economic Blocks
100
What is protectionism?
the theory or practice of shielding a country's domestic industries from foreign competition by taxing imports.
100
What are government quotas?
A quota is a government-imposed trade restriction that limits the number, or monetary value, of goods that can be imported or exported during a particular time period. Quotas are used in international trade to help regulate the volume of trade between countries.
100
What is bartering?
Direct exchange of goods without any money
100
What is the Big Mac Index
a survey done by The Economist magazine that is used to measure the purchasing power parity between nations, using the price of a Big Mac as the benchmark.
100
What is a free trade area?
gradually eliminate formal barriers to trade within the bloc while maintaining independent trade polices outside the bloc. Ex: NAFTA
200
What are tariffs and non-tariff trade barriers?
a tax or duty to be paid on a particular class of imports or exports. non-tariff trade barriers= gov't polices that restrict trade without imposing a direct tax or duty.
200
What is dumping and anti-dumping?
dumping is a kind of predatory pricing, especially in the context of international trade. It occurs when manufacturers export a product to another country at a price below the normal price. antidumping is gov't in the importing country responding to dumping by imposing a tax on dumped products.
200
What is a compensation deal?
payments both in goods & cash
200
What is PPP?
Purchasing power parity; is an economic theory that states that the exchange rate between two currencies is equal to the ratio of the currencies' respective purchasing power.
200
What does BRIC(S) stand for?
Brazil, Russia, India, China, & South Africa
300
What are subsidies?
Gov't grants monetary or other resources to firms, which reduce the cost of business for the recipient
300
Define the following things: Local content requirements, confiscation, nationalization
Local content requirements= A minimum level of local content is sometimes a requirement under trade laws when giving foreign companies the right to manufacture in a particular place. Confiscation= Seizure and expropriation of private property by a government or its agency as a punishment for breach of a law. Nationalization= the transfer of a major branch of industry or commerce from private to state ownership or control.
300
What are buy-back agreements?
A contract between a purchaser and vendor in which the vendor agrees to repurchase the property from the purchaser if a certain event occurs within a specified period of time. The buy-back price is usually set out in the agreement.
300
What is global sourcing?
Global sourcing is the practice of sourcing from the global market for goods and services across geopolitical boundaries. Global sourcing often aims to exploit global efficiencies in the delivery of a product or service.
300
What are the cons of regional integration?
1. Reduced Global Free Trade 2. Loss of National Identity 3. Sacrifice of National Sovereignty 4. Corporate Restructuring & Job Loss
400
What are countervailing tariffs, privatization, and embargoes?
government retaliation against subsidies by imposing a duty on imported goods to offset subsidies in the exporting country. privatization= the transfer of a business, industry, or service from public to private ownership and control. embargoes= an official ban on trade or other commercial activity with a particular country.
400
Explain what a specific tariff is. What are investment barriers and investment incentives?
Specific Tariff= A specific tariff is levied as a fixed charge per unit of imports Investment Barriers= FDI & Ownership restrictions in other countries. Investment incentives are tax concessions, low interest rates, free land/delayed rent, grants
400
What is the definition of countertrade?
all or partial payments are made in goods rather than cash
400
What is the difference between offshoring and outsourcing?
Outsourcing refers to an organization contracting work out to a third party, while offshoring refers to getting work done in a different country, usually to leverage cost advantages. ... The biggest difference is that while outsourcing can be (and often is) offshored, offshoring may not always involved outsourcing.
400
What are the pros of regional integration?
1. Expand market size 2. Achieve scale economies & enhanced productivity 3. Attract direct investment (FDI) from outside the bloc 4. Acquire stronger defensive & political posture
500
What are the arguments for and against Government intervention?
For: 1. sought for their capital, technology, and management 2. accommodated for their contributions to social needs 3. courted for their global efficiency & world market access Against: 1. dislike for their impact on society 2. feared for their power and independence 3. resented for the nations dependence on them.
500
Why do Governments intervene in international business?
1. Generate Revenue 2. Protect infant industries 3. increase employment 4. preserve national culture/identity 5. For the safety of the citizens
500
What is a counterpurchase?
Involves 2 distinct contracts: 1. agree to act as purchaser and supplier to each other 2. to purchase all goods in cash.
500
Describe the difference between advanced, developing, and emerging markets.
Advanced= post-industrial, high per capita income, highly competitive industries well developed Developing= low-income, limited industrialization, stagnant economies Emerging= former developing economies industrializing, rapidly improving living standards & economic growth, growing middle class
500
What are the 5 levels of regional economic integration? [Double points if you can explain what each one is.]
1. Free Trade Area 2. Customs Union 3. Common Market 4. Economic Union 5. Political Union