Benefits and Restrictions of International Trade

Import quotas are restrictions on the quantity of exports for a specific period of time.

Antidumping duties are costs levied on exports that are priced below the cost to drive domestic firms out of business.

Nontariff barriers involve imposing taxes on foreign goods.

Local content requirements mandate that a certain proportion of the value of goods made in one country must originate from another country.

Subsidies refer to government payments to foreign firms to produce a competitive advantage.

Administrative policies make it easier to import foreign goods.

Voluntary export restraints are effective policies to limit imports from foreign countries.

President Barack Obama approved a 35% tariff on Chinese tires as part of a promise to boost imports that benefit American workers.

The Chinese government's response to the US tariff on tires involved investigating if the US was selling goods in China above cost.

The potential of saving manufacturing jobs always outweighs the risk of angering trading partners according to the text.

Managers should not focus on discovering and leveraging comparative advantages of locations.

Free trade requires constant efforts and sacrifices to demonstrate and advance the gains from international trade.