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Flashcards in study guide 4 Deck (18)
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1
Q

subsidy

A

financial assistance to domestic producers in the form of cash

2
Q

foreign trade Zone (FTZ)

A

designated geographic region through which merchandise allowed to pass with lower customs duties and/or fewer customs procedures

3
Q

tariff

A

government tax levied on a product as it enters or leaves a country

4
Q

ad valorem tariff

A

tariff levied as a percentage of the stated price of an imported product.

5
Q

specific Tariff

A

tariff levied as a specific fee for each unit of an important product

6
Q

compound tariff

A

tariff levied on an imported product

7
Q

quota

A

restrictions on the amount of a good that can enter or leave a country during a certain period of time

8
Q

voluntary export restraint

A

unique version of export quota that a nation imposes on its own exports, usually at the request of an importing nation

9
Q

tariff-quota

A

lower tariff rate for a certain quantity of imports and a higher rate for qualities that exceed the quota.

10
Q

embargo

A

complete ban on trade in one or more products with a particular country

11
Q

administrative delays

A

regulatory controls or bureaucratic rules designed to impair the flow of imports into a country

12
Q

currency controls

A

restrictions on the convertibility of a currency into other currencies.

13
Q

mercantilism

A

trade theory that nations should accumulate financial wealth, usually in the form of gold, by encouraging exports and discouraging imports

14
Q

trade surplus

A

condition that results when the value of nations exports is greater than the value of its imports

15
Q

true deficit

A

conditions that results when the value of a country imports is greater than the value of its exports

16
Q

absolute advantage

A

ability of nation to produce a good more efficiently than any other nation

17
Q

comparative advantage

A

inability of nation to produce a good more efficiently than other nations but an ability to produce that good more efficiently than it does any other good.

18
Q

factor proportions theory.

A

trade theory stating that countries produce and exports goods that require resources that are abundant and import goods that require a resource in short supply.