Term
|
Definition
| Marx's theory of a classless society, developed by his successors into control of society by the Communist Party. INCLUDES a commitment to the ultimate goal of a worldwide communist state. |
|
|
Term
|
Definition
| Government seizure of the property within its borders owned by foreigners, followed by prompt, adequate, and effective compensation paid to the former owners. WITHOUT compensation, expropriation becomes CONFISCATION |
|
|
Term
|
Definition
| An economic system in which the means of production and distribution are for the most part privately owned and operated for private profit. There are no PERFECTLY capitalistic governments because current capitalist governments still regulate private businesses and own a few of their own. |
|
|
Term
|
Definition
| Public, collective ownership of the basic means of production and distribution, operating for use rather than profit. Developing countries often possess some degree of this but still welcome capital investment. |
|
|
Term
|
Definition
| A person, group, or party that wishes to minimize government activities and maximize private ownership and business. In eastern Europe and China, this term refers to people who resist the move from centrally planned economies and govt's to democracies and market economies. A more extreme version of this is RIGHT WING in the United States. |
|
|
Term
|
Definition
| (US usage) A person, group, or party that urges greater government involvement in business and other aspects of human activities. LEFT WING is the more extreme version of this; both of these uses have not spread outside of the United States. Both Liberal and Conservative LOBBIES have much power in litigation. |
|
|
Term
| What are the 6 reasons that a government may nationalize a firm? |
|
Definition
| (1) To extract more money from the firm (2) Profitability (3) Ideology (4) Job Preservation (5) A government has invested in the firm (control will follow) (6) Happenstance (think post WWII) |
|
|
Term
| 4 major countries that finance terrorism? |
|
Definition
| Cuba, Iran, Sudan, and Syria |
|
|
Term
|
Definition
| Characteristic of a government that MAINTAINS itself in POWER and whose fiscal, monetary, and political policies are PREDICTABLE and not subject to sudden, radical changes. INSTABILITY is the opposite (duh). |
|
|
Term
|
Definition
| Long-standing enmities between tribes, races, religions, ideologies, or countries. Hutus and Tutsis - Tamil Tigers |
|
|
Term
| Country Risk Assessment (CRA) |
|
Definition
| An evaluation, conducted by a bank or business having an asset or payable from a foreign country or considering a loan or an investment there, that assesses the country's economic situation and policies and its politics to determine how much risk exists of losing the asset or not being paid. |
|
|
Term
| 2 pieces of information needed to complete a CRA? |
|
Definition
| (1) Nature of business - the needs of the company (2) Length of time - required by economic activity being considered. *IMPORTANT NOTE - the utility of risk analysis decreases rapidly with longer periods of time. |
|
|
Term
|
Definition
| Selling a product abroad for less than the cost of production, the price in the home market, or the price to third-party countries. PREDATORY DUMPING refers to an exporter lowering its export price to force the importing nation's domestic producers out of business, expecting to raise prices once that objective is completed. *OTHER NOTE - antidumping measures differ from most trade restrictions because they are applied to specific producers in selected nations. |
|
|
Term
|
Definition
| Unfair competition caused by firms, usually from developing nations with lower labor costs and poorer working conditions, which undermines social support systems, including worker benefits. |
|
|
Term
|
Definition
| Unfair competition caused by a country's lax environmental standards. |
|
|
Term
| Financial Services Dumping |
|
Definition
| Unfair competition caused by a nation's low requirements for bank capital-asset ratios. |
|
|
Term
|
Definition
| Unfair competition caused by cultural barriers aiding local firms. |
|
|
Term
|
Definition
| Unfair competition caused by differences in corporate tax rates or related special breaks. |
|
|
Term
|
Definition
| Another cause of retaliation; are Financial contributions provided directly by a government, which confer a benefit including grants, preferential tax treatment, and government assumption of normal business expenses. |
|
|
Term
| High customs duties... while subsidized overproduction in developed countries... |
|
Definition
| ...restrict access to wealthy countries' markets... artificially depresses prices in world markets. |
|
|
Term
| Who would request the imposition of countervailing duties and why? What are countervailing duties? |
|
Definition
| Competitors in importing nations; to offset the effect of a subsidy; They are additional import taxes levied on imports that have benefited from export subsidies. |
|
|
Term
|
Definition
| (aka import duties) are taxes on imported goods for the purpose of raising their price to reduce competition for local producers or stimulate local production. Can result in harmful retaliation. Can also be used to raise revenue on imports and exports. |
|
|
Term
|
Definition
| Bill signed by hoover that introduced some of the highest tariffs ever, comparative advantage fell to the floor and unemployment went through the roof. |
|
|
Term
|
Definition
| An import duty levied as a percentage of the invoice value of imported goods. |
|
|
Term
|
Definition
| A fixed sum levied on a physical unit of an imported good, irrespective of the invoice value. |
|
|
Term
|
Definition
| A combination of specific and ad valorem duties. *NOTES - In an inflationary period, a specific duty loses it importance unless changed frequently, whereas the amount collected from an ad valorem duty increases as the invoice price rises. |
|
|
Term
|
Definition
| Guarantees that a certain minimum import duty will be paid irrespective of the actual invoice price paid. Used when foreign exporters charge so little that the ad valorem duty does not close the gap. |
|
|
Term
|
Definition
| An import duty set at the difference between world market prices and local government-supported prices. Guarantees that the market price of imports will be the same as domestically produced goods. |
|
|
Term
|
Definition
| A type of non-tariff barrier which puts numerical limits on specific classes of imports. |
|
|
Term
|
Definition
| Once the specified amount has been imported, further importation for the period is prohibited. |
|
|
Term
|
Definition
| Quotas whose limits are fixed with regard to source. |
|
|
Term
|
Definition
| (aka discriminatory quotas) Quotas assigned to specific countries. Transshipping and deceptive labeling schemes have been used in attempts to avert these. |
|
|
Term
| Voluntary Export Restraints (VERs) |
|
Definition
| Export Quotas imposed by the exporting nation. |
|
|
Term
| Orderly Marketing Arrangements |
|
Definition
| Formal Agreements between exporting and importing countries that stipulate the import or export quotas each nation will have for a good. The largest and oldest is the Multi-Fiber Agreement. |
|
|
Term
| Direct Government Participation in Trade |
|
Definition
| (Non-quantitative, non-tariff barrier) the most common form is the subsidy, nearly ALL governments subsidize agriculture. Government procurement policies are also trade barriers because they restrict purchases of imported goods by government agencies, may also require a minimum local content. |
|
|
Term
| Customs and other administrative procedures |
|
Definition
| (Non-quantitative, non-tariff barriers) imposed by the government that either discriminate against imports or favor exports - China charging different duties at different ports. |
|
|
Term
|
Definition
| (Non-quantitative, non-tariff barrier) - Such as the EU forbidding the importation of GM food from the US. |
|
|
Term
| What is the cost of the barriers to trade? |
|
Definition
| Tens of billions of dollars per year and benefits to only a few companies in protected sectors of the economy. |
|
|
