Ch. 6 (Political Economy of International Trade)

Ch 6(Political - Political Economy of International Trade Instruments of Trade Policy Tariffs Subsidies Import Quotas Voluntary export restraints

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Political Economy of International Trade Instruments of Trade Policy Tariffs Subsidies Import Quotas Voluntary export restraints Local content requirements Anti-Dumping policies Administrative policies Tariffs Taxes levied on imports Gains o Government o Domestic Producer and employees Losses o Consumers pay higher prices o Inefficient o Employees by not having to develop new skills Subsidies Cash grants, low-interest loans, tax breaks, equity participation, government purchases Aim to achieve lower costs to o Compete against cheaper imports o Gain export markets o Increase domestic employment o Help local producers achieve first-mover advantage in emerging industries Quotas and Voluntary Restraints Quota-Gvmt specifies how much of what product can be imported from which countries Voluntary export restraint: How much of what product can be exported to which countries imposed officially or unofficially by the home government
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This document was uploaded on 11/04/2011 for the course BUSI 610 at UNC.

Page1 / 2

Ch 6(Political - Political Economy of International Trade Instruments of Trade Policy Tariffs Subsidies Import Quotas Voluntary export restraints

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online