E2 International Trade: Trade Restrictions & Trade Policy

These flashcards cover key concepts and terms related to international trade, trade restrictions, and trade policy, as outlined in the lecture notes.

Neo-mercantilism

Economic theory suggesting that exports create jobs while imports take jobs away, advocating for restrictions on imports and encouragement of exports.

Protectionism

Imposing trade barriers to restrict imports and shield domestic producers from foreign competition.

Trade barriers

Government limitations on the international exchange of goods.

Tariff

A tax imposed on imports, raising the price consumers pay for imported goods.

Nontariff barriers to trade

Obstacles to imports other than tariffs, such as regulations favoring domestic products.

Quota

A non-tariff barrier that limits the quantity of a foreign good that can be sold domestically.

Redistributive effects

The impact of trade barriers that allows domestic producers to gain while likely causing domestic consumers to lose.

Stolper-Samuelson theorem

Theory that trade protection benefits the scarce factor of production in the country.

Ricardo-Viner model

Model stating that actors align their interests with the sector they are employed in, rather than with factors like labor or capital.

Domestic politics of trade

The political landscape regarding who favors or opposes trade protectionism, typically involving 'winners' and 'losers'.