Study Notes on International Trade

Protectionism

Use of measures to shield domestic producers from imports, including tariffs, quotas, and nontariff barriers.

Trade Barriers

Regulatory barriers that increase import prices, including tariffs, quotas, and regulations.

Stolper-Samuelson Approach

An economic theory stating that protectionism benefits the scarce factor of production and harms the abundant factor.

Ricardo-Viner Approach

Focuses on industry-specific factors influencing collective interest regarding trade policy.

World Trade Organization (WTO)

An international organization that regulates trade agreements and enforces trade policies among member countries.

Heckscher-Ohlin Theory

Explains international trade patterns based on a country's factor endowments, such as land, labor, and capital.

Tariff

A tax on imports paid by the importer, affecting the price of imported goods.

Quota

A limit on the quantity of a foreign good that can be sold domestically, affecting prices indirectly.

Nontariff Barriers

Regulations that hinder foreign products, like health standards, favoring domestic goods.

Comparative Advantage

The ability of a country to produce goods more efficiently than other goods, leading to trade benefits.