Free Trade: Absence of Barriers to Free Flow of Goods and Services between Countries
1. Define the term Free Trade: The absence of barriers to the free flow of goods and services between countries.
2. What does this chapter look at?
-The political reality of IT
-It presents us with a clear example of government intervention in IT that is designed to protect the interests of domestic producers.
-The political and economic reasons tha government have for intervening in IT. (when govs. intervene, they often do so by restricting imports of goods and services into their nations, while adopting policies that promote domestic production and exports.)
-The emergence of the modern international trading system and the creation of a series of multinational treaties.
The purpose of treaties has been to lower barriers to the free flow of goods and services between nations.
-WTO promotes free trade by limiting the ability of national govs. to adopt policies that restrict imports into their nations.
3. Define the term tariff: A tax levied on imports or exports.
4. Define the term, specific tariff: tariff levied as a fixed charge for each unit of good imported
5. Define the term, Ad valorem tariff: a tariff levied as a proportion of the value of an imported good.
6. In most cases, why are tariffs placed on To protect domestic producers from foreign competition by raising the price of imported imports? goods. Tariffs also produce revenue for the government.
7. What is the important thing to Who suffers and who gains. Domestic producers gain- consumers lose because they must understand about import tariffs? pay more for certain imports.
8. What are the two conclusions that can be derived from economic analysis of the effect of import tariffs?
1- tariffs are generally pro-producer and anti-consumer.
2- import tariffs reduce the overall efficiency of the world economy.
9. Sometimes tariffs are levied on exports of a product from a country.... what are the two basic objectives for
2. What does this chapter look at?
-The political reality of IT
-It presents us with a clear example of government intervention in IT that is designed to protect the interests of domestic producers.
-The political and economic reasons tha government have for intervening in IT. (when govs. intervene, they often do so by restricting imports of goods and services into their nations, while adopting policies that promote domestic production and exports.)
-The emergence of the modern international trading system and the creation of a series of multinational treaties.
The purpose of treaties has been to lower barriers to the free flow of goods and services between nations.
-WTO promotes free trade by limiting the ability of national govs. to adopt policies that restrict imports into their nations.
3. Define the term tariff: A tax levied on imports or exports.
4. Define the term, specific tariff: tariff levied as a fixed charge for each unit of good imported
5. Define the term, Ad valorem tariff: a tariff levied as a proportion of the value of an imported good.
6. In most cases, why are tariffs placed on To protect domestic producers from foreign competition by raising the price of imported imports? goods. Tariffs also produce revenue for the government.
7. What is the important thing to Who suffers and who gains. Domestic producers gain- consumers lose because they must understand about import tariffs? pay more for certain imports.
8. What are the two conclusions that can be derived from economic analysis of the effect of import tariffs?
1- tariffs are generally pro-producer and anti-consumer.
2- import tariffs reduce the overall efficiency of the world economy.
9. Sometimes tariffs are levied on exports of a product from a country.... what are the two basic objectives for