eco322-eam2 - What is meant by the most favored-nation...

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A. What is meant by the most –favored-nation clause and how does it relate to the tariff policies of U.S.? Most favored nation (MFN) clause is an agreement between two nations to apply tariffs to each other at rates as low as those applied to any other nation having MFN status. MFN relate to the tariff of U.S. are indiscrimination clause. The two countries will give the same facilities to each other that will not be lower than the third part on tariffs, people’s status etc. B. What is the purpose of economic sanctions? What problems do they pose for the nation initiating them? When are sanctions most effective in achieving their goals? Government-mandated limitations placed on customary trade or financial relations among nations. Economic sanctions consist of trade and financial restraints imposed on foreign nations. They have been used to preserve national security, protect human rights, and combat international terrorism. The nation initiating of the economic sanctions, the imposing nation, hopes to impair the economic capabilities of the target nation to such an extent that the target nation will succumb to its objectives. Factors influencing the success of sanctions: Number of nations imposing sanctions Degree to which the target nation has economic and political ties to the imposing nation(s) Extent of political opposition in the target nation Cultural factors in the target nation Unilateral sanctions may have some success in achieving intended results if sanctions are imposed by a large number of nations. from the economic perspective instead of politics. C. Explain how the escape clause, countervailing duties, and antidumping duties each serve distinct function within the scope of the U.S. trade remedy laws. The trade remedy laws are the administrative measures to rectify the unbalance of trade system caused by the foreign unfair regulations or irregular import. The escape clause provides temporary protection to U.S. producers who desire relief from foreign imports that are fairly traded. Countervailing duties are intended to offset any unfair competitive advantage that foreign producers might gain over domestic producers because of foreign subsides. U.S. antidumping duties are intended to neutralize two unfair trading practices: export sales in the US at price discrimination in which foreign firms sell in the United States at a price lower than that charged in the exporter’s home market. D. What is intellectual property? Why has intellectual property become a major issue in recent rounds of international trade negotiations? Intellectual property includes copyrights, trade-marks, and patents. Foreign
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This note was uploaded on 07/07/2011 for the course ECON 322 taught by Professor Steven during the Spring '11 term at Southern New Hampshire University.

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eco322-eam2 - What is meant by the most favored-nation...

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