Study Guide Spring 2016 Chapters 7-9

Study Guide Spring 2016 Chapters 7-9 - Chapter 7 What do we...

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Chapter 7 What do we mean by free trade? What do we mean by subsidies, administrative trade policies, tariffs (specific and ad valorem), quotas, quota rent, and voluntary export restraints? Which groups of the society tariffs benefit and which groups do not benefit? Which industries benefit from subsidies? What are some of the characteristics and impact of tariffs? What is a quota rent? What are some of the economic and political arguments for government trade interventions, local content rules, dumping and antidumping? What do we mean by national security, consumer protection, infant industry, and human rights protection trade arguments? Chapter 8 What is FDI? What is greenfield and merger and acquisition investment? What are their advantages and disadvantages? When is a Greenfield investment more appropriate; when is a merger or acquisition more appropriate? What do we mean by horizontal and vertical (forward and backward) foreign direct investment?
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