1.Government involvement in tradea.Be comfortable with the definitions of tariff, quotas, subsidies, preferential fixed exchange rates and industrial policy.Tariff-tax levied on importsQuotas-trade restriction that sets a physical limit on quantity of good importedSubsidies-financial assistance paid to a biz/economic sector.Preferential fixed exchange rate- exchange rate is matched to the value of another single currency/valueIndustrial policy-plan of a country that denotes their strategic effort to influence development and the industry. b.Be able to graph a tariff and quota and discuss the numbers assigned to various points on the graph.c.Understand and be prepared to discuss the definition of the Import Substitution Strategy.It’s a trade and economic based on the premise that a country should attempt to reduce its foreign dependency through the local production of industrialized products. They wanted
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