Week 4- International Trade Problem Set Flashcards Preview

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Flashcards in Week 4- International Trade Problem Set Deck (12):
1

When a country takes a UNILATERAL approach to free trade, it removes___

Trade restriction on its own.

2

Problem w/ the protection as a bargain chip argument for trade restriction is IF it fails___

Tthe country faces a choice between 2 bad options.

3

Quota___

Limited on quantity of imports.

4

When a country takes multilateral approach on free trade, it reduces___

It's trade restriction while other countries do the same.

5

Tariff is a___

Tax on imported goods.

6

World price___

Price of good that prevails in a world market.

7

General Agreement on Tariffs and Trade (GATT)___

Response to high tariff during Great Depression.

8

Economies of scale defined as____

Some goods can be produced at low cost if they produced in large quantities.

9

NAFTA reduces____

Trade restrictions among NA nations.

10

Efficiency argument is___

Not a common advanced argument for trade restrictions.

11

Price of sugar in international market___

World price of sugar.

12

“Florida grows orange. Texas pumps oil, and California makes wine”___

As a confirmation of the virtues of free trade.