Karteikarten
OBS 359 chapter 6
Karten in diesem Stapel (36)
- 1Arguments for trade restrictions:1. National defense
2. Sanctions to punish offending nations
3. To protect infant (dying industry
4. Protect domestic jobs from cheap foreign labor
5. Scientific Tariff or Fair competition
6. Retaliation
- dumping
- subsidies - 21. National defense:- Argument suggests
- criticism
- bans on exports - 32. Sanctions to punish offending nations:- Inflict economic damage...
- Common approach
- Seldom achieve goal
- Collateral economic damage - 43. Protect infant (dying) industry:* INFANT:
- Advocates may claim... comparative advantage.. protected until:
- investment capital
-labor force trained
- production techniques
- economies of scale
- Without the protection...
- Not limited to developing nations
*DYING:
- One threatened... (definition)
- Takes time..adjustments...
- Facilitate smoother transition - 54. Protect domestic jobs from cheap foreign labor:- Compare wage rates
- Conclusion...
- Argument fallacies:
1. Wage costs...
2. The productivity per worker... - 65. Scientific Tariff or Fair Competition:- Supporters believe in fair competition.
- Import duties to.. eliminate any unfair advantage...
- Not their intent to ban exports
- Equalize the process
- Impact on the consumers unfair... - 76. Retaliation:- Retaliate with similar restrictions...
- "WTO"
1. Dumping
2. Subsidies - 8Dumping-*Selling a product abroad for less than:
- average production cost
- market price
-price to third countries
*A manufacturer may:
- Dump products to sell excess production...
- "predatory dumping" ...
* Most governments retaliate when.. - 95 New types of dumping:1. Social dumping
2. Environmental dumping
3. Financial services dumping
4. Cultural dumping
5. Tax dumping - 101. Social Dumping- Unfair competition caused by firms
- Usually from developing nations with lower labor costs and poorer working conditions;
- Which undermines social support systems, including worker benifits - 112. Environmental dumping- Unfair competition caused by a country's lax environmental standards
- Argued that Globalization provides incentive to national governments to set weak environmental policies - 123. Financial services dumping- Unfair competition caused by a nation's low requirements for bank capital-asset ratios.
- 134. Cultural dumping- Unfair competition caused by cultural barriers aiding local firms.
- 145. Tax dumping- Unfair competition caused by differences in corporate tax rates or related special breaks.
- 15Subsidies- Definition
- Subsidies to encourage exports or protect from imports
- "countervailing duties" - 16Tariff Barriers / Import dutiesTaxes levied on imported goods for the purpose of raising their selling price in the importing nation's market to reduce competition for domestic producers
- 17Tariffs / Import duties- Raise revenue..
- Exports of commodities...
- Imposition of tariffs... - 18Import Duties are: (types)1. Ad Valorem
2. Specific
3. Compound - 191. Ad Valorem dutyAn import duty stated as a percentage of the invoice value of the imported goods.
- 202. Specific:A fixed sum levied on a physical unit of an imported good.
- 21To correct defficiency1. Official prices
2. Variable Levy - 22"Official prices"- Included in the customs tariff of some nations
- Guarantees that a certain minimum import duty will be paid irrespective of the actual invoice price. - 23" Variable Levy"An import duty set at the difference between world market prices and local government-supported prices.
Guarantees that the market price of the import will be the same as that of the domestically produces goods. - 24"Nuisance Tariffs"When tariffs are assessed at very low rates.
- 25Non-Tariff BarriersAll forms of discrimination against imports other than those import duties.
- 26NTB Forms:1. Quantitative:
- Quotas
- Absolute quotas
- Allocated quotas
- Tariff-rate quotas
-Transshipping
- Voluntary export restraints (VERs)
- Orderly marketing arrangements
2. Nonquantitative:
- Direct government participation in trade
- Customs and other administrative procedures
- Standards - 27"Quotas"Numerical limits placed on specific classes of imports during a specified period.
- 28"Absolute Quota"Once the specified amount has been imported, further importation for the rest of the period is prohibited.
- 29" Allocated Quotas"The government of the importing nation assigns quantities to specific countries.
- 30"Tariff-rate quotas"- Some goods subject
Permit a stipulated amount to enter duty-free or at a low rate
When that amount is reached, a much higher duty is charged for subsequent importations. - 31"Transshipping"Used to evade allocated quotas
Finished goods are first shipped to a country with an unfilled quota, where goods are labelled as products of that country.
Then they are shipped to the quota-imposing nation. - 32"voluntary export restraints" (VERs)Export quotas imposed by the exporting nation.
- 33"Orderly marketing arrangements"- Are VERs
- Consisting of formal agreements between the governments of exporting and importing countries
- To restrict international competition and preserve some of the national market for local producers.
- Stipulate the size of the export or import quotas that each nation will have for a particular good. - 34NONQUANTITATIVE: 1. Direct government participation in trade:* Most common for: the subsidy
- protecting industries
- Subsidize agriculture...
- Agricultural support programs...
* Government procurement policies
- Favour domestic producers
- Restrict purchases..
- "minimum local content"... - 352. Customs and other administrative procedures:- These barriers...
- Governments have also... - 363. Standards:- Both governmental and private standards to...
- Complex and discriminatory...
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- Karteikarten am OBS 359 chapter 6, erstellt von chelseaklokow am 03/05/2016.
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