TRADE TERMS

TRADE TERMS - STUDY GUIDE FOR MIDTERM EXAM TAM 217 Spring...

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STUDY GUIDE FOR MIDTERM EXAM TAM 217 Spring 2008 TRADE TERMS Trade Balance: o Exports-Imports=Trade Balance Trade Deficit: o A negative trade balance Trade Block: o An order/trade submitted for sale or purchase of a large quantity of securities. Trade Liberalization: o Restrictions to trade include taxes and tariffs , and other non-tariff barriers, such as legislation and quotas . Trade liberalization entails reductions to these trade barriers. Free Trade: o A market model in which trade in goods and services between or within countries flow unhindered by government-imposed restrictions Fair Trade: o An organized social movement and market-based model of international trade which promotes the payment of a fair price as well as social and environmental standards in areas related to the production of a wide variety of goods . Quotas: o A proportional share, as of goods, assigned to a group or to each member of a group; an allotment Tariff: o an official list or table showing the duties or customs imposed by a government on imports or exports Dumping: o Transporting waste from one country to another; disposing of waste improperly
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Counterfeiting: o an imitation that is made usually with the intent to deceptively represent its content or origins Governmental Subsidies: o Countervailing Duties: o CVD o a means to restrict international trade in cases where imports are subsidized by a foreign country and hurt domestic producers. o According to WTO rules, a country can launch its own investigation and decide to charge extra duties, provided such additional duties are in accordance with the WTO's Dispute Settlement Mechanism (DSM). o Since countries can rule domestically whether domestic industries are in danger and whether foreign countries subsidize the products, the institutional process surrounding the investigation and determinations has significant impacts beyond the countervailing duties. Transshipments: o the transfer of goods from one conveyance to another for shipment Safeguards: o a tool used by a state to restrain international trade to protect a certain home industry from foreign competition. o In the WTO system, a member may take a “safeguard” action (i.e., restrict imports of a product temporarily) to protect a specific domestic industry from an increase in imports of any product which is causing, or which is threatening to cause, serious injury to the domestic industry that produces like or directly competitive products. MFA: o Multi Fibre Arrangement o Agreement on Textile and Clothing (ATC) o governed the world trade in textiles and garments from 1974 through 2004, imposing quotas on the amount developing countries could export to developed countries . It expired on 1 January 2005 .
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o The MFA was introduced in 1974 as a short-term measure intended to allow developed countries to adjust to imports from the developing world. Developing countries have a natural advantage in textile production because it is labor intensive and they have low
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This note was uploaded on 04/03/2008 for the course TAM 217 taught by Professor Hodge during the Spring '08 term at N.C. State.

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TRADE TERMS - STUDY GUIDE FOR MIDTERM EXAM TAM 217 Spring...

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