MGMT 350 - International Business

Flashcards summarizing key concepts from the MGMT 350 International Business lecture on government policy and international trade.

Government Policy

Refers to the actions taken by government to influence economic activities and regulate trade.

Import Tariffs

Taxes levied on imports to increase revenue and protect domestic producers.

Export Tariffs and Bans

Taxes or restrictions placed on the export of goods to ensure domestic supply.

Subsidies

Government payments to domestic producers to lower production costs and enhance competitiveness.

Import Quotas

Direct restrictions on the quantity of a good that can be imported.

Voluntary Export Restraint (VER)

A quota on trade imposed by the exporting country at the request of the importing country's government.

Local Content Requirements (LCR)

Regulations requiring a certain fraction of a good to be produced locally.

Antidumping Policies

Measures to protect domestic producers from foreign firms selling goods below market costs.

Infant Industry Argument

The rationale for protecting new industries until they can compete internationally.

Strategic Trade Policy

Government interventions aimed at enhancing national income through support of domestic firms.

Retaliation and Trade War

Response to trade policies that may provoke countermeasures by other countries.

Krugman's Argument

View that strategic trade policies benefit domestic income but can provoke retaliation.

Managerial Implications

The effects trade policies have on company strategies and operations.

Political Instruments

Tools used by governments to implement trade policies and interventions.