Final Exam Flashcards
(152 cards)
Globalization has greater ______ (culture, technology, politics, military, and economics) and shrinking _____ (focus on economics)
Connectivity
Economics
Since 1955, the volume of the world _____ has grown much faster than the world ____ as a whole
Trade
Economy
For many countries, trade has been the engine of ____
Growth
Free trade benefits:
Developing countries annual growth ___% for ___ years
Developed countries ___% annually
7% for 25 years
2.5%
Free trade is beneficial for societies in the ____
Aggregate
Free trade benefits ___ and ___
Consumers and producers
Opportunities for producers with free trade (2):
- New markets - expansion
- Greater efficiency
Free Trade = ____ products for consumers
Example, many goods available at Target stores come from _____
Labor costs in ____ are relatively low, so their products are relatively _____
Cheaper
China
China
Inexpensive
The theory of practice of shielding a country’s domestic industries from foreign competition by taxing imports
Protectionism
Barriers to Trade: _____ shelters _______ from foreign competition
Protection
Domestic producers
Trade barriers make foreign goods more ____ to ____
Expensive
Consumers
Trade barriers: Domestic consumers are more likely to purchase _____ products
Domestic
Different types of protectionism (5):
- Import Prohibitions
- Import Quotas
- Tariffs
- Discriminatory internal taxes and regulations
- Production subsidies
Import prohibitions: Some _____ are prohibited. Completely insulates state’s A’s domestic car industry from ____ competition.
Exports
Foreign
Import prohibitions: common with sensitive _______.
Example of import prohibition:
Military technologies
Example of import prohibition: Thailand prohibited imported cigarettes until 1990s
Import quotas are the numerical limits on the amount of ______ that can enter a country in a given ____
Imports
Year
Import quotas: ____ the market is reserved for _____ market
Half
A’s domestic
Import quotas:
US imposed ____ quotas on China from ___ to ___
Textile
2006-2008
Taxes on the import or export of a good
Tariffs
Tariff:
A could imposed 20% tariff on every car ____ from B. Raises costs of __ cars by __%
Imported
B
20%
India imposes tariffs on imported ___
Wines
Discriminatory international taxes and regulations:
Impose higher _____ on ____ cars
Internal taxes
Imported
Discriminatory international taxes and regulations:
Taxes: Sales tax on A could be 20%, but it could be ___ for B
Operates same way as ____, cost is ____
40% (Higher)
Tariff
Higher
Discriminatory international taxes and regulations:
Regulations: A could require that B cars be fitted with ____ pollution control that ____ the costs for B
Expensive
Raises