Studied by 2 people
tariff
tax on imports - makes imports more expensive
subsidies to domestic producers
government payments to firms to encourage domestic production, reduces cost of production for producers
embargoes
total ban on imported goods (can be imposed on certain goods e.g drugs)
quotas
physical limits placed on the level of imports coming into a country
administrative restrictions
when countries impose restrictions and ‘red tape’ such as health and safety requirements, making it difficult for foreign exporters to access a country’s market
voluntary export restraints
agreements between countries to limit trade in certain products to a specific quota
value of the currency can be reduced
raises the price of foreign imports and lowers the price of domestic exports
what does free trade mean
unrestricted international trade
Note
Flashcard