International Trade Policy Overview

A tax imposed by a government on imported goods.

Government payment to domestic producers, helping them compete with foreign imports.

International organizations aimed at promoting free trade, reducing tariffs and trade barriers.

A government-issued permit allowing a business to import a specific type of good.

A limit on the quantity of a particular good that can be imported into a country.

A distortion in the economy where domestic producers overproduce due to inflated prices, leading to higher prices for consumers.

A distortion in the economy where consumers buy fewer goods due to inflated prices caused by tariffs or subsidies.

Restrictions on trade that are not tariffs, such as quotas, licenses, and export restraints.

A tariff calculated as a percentage of the imported good's value.

Domestic producers benefit from tariffs as they face less competition from cheaper imported goods.

Tariffs harm consumers by raising prices for imported goods they buy.

Tariffs reduce overall economic efficiency and limit global trade by distorting market forces.

Governments often use tariffs to protect emerging industries or economies from foreign competition.

When a country has a lower cost of production for a specific good compared to other countries.

Tariffs are sometimes used to protect domestic jobs, though they can also lead to job losses in other sectors.

A situation where a government does not restrict imports or exports.

Government intervention in international trade to protect specific domestic industries or groups.

A specific tariff is levied as a fixed charge per unit of an imported good. For example, a $15 tariff on each pair of shoes imported.

A self-imposed export limit by a country, often to appease foreign governments.

A rule that requires a certain portion of a good to be produced within a specific country, often expressed in terms of physical quantity or value.

Administrative policies are bureaucratic rules designed to make it difficult for imported goods to enter a country. These rules often hurt consumers by limiting their access to potentially superior foreign products.

Selling goods in a foreign market at a price lower than their cost of production, or below their fair market value. This can be used to unload excess inventory or, more aggressively, drive out local competitors and later raise prices.

Policies designed to punish foreign firms that engage in dumping. The goal is to protect domestic producers from perceived unfair competition.

These duties, also known as countervailing duties, are imposed on imported goods to offset the unfair price advantage gained by dumping.

Trade barriers that don't involve direct taxes, but instead use regulations, standards, or other measures to restrict imports.

Both import quotas and VERs can benefit domestic producers by reducing foreign competition, but they raise prices for consumers due to reduced supply and increased demand.

Tariffs act as a tax on imported goods, leading to higher prices for consumers and businesses due to the reduced competition. This incentivizes domestic production.

While tariffs might temporarily benefit certain domestic industries, the long-term effects may include reduced efficiency due to less competition and lower profits as substitutes for imported goods emerge in the market.

Tariffs can cause inflation by raising prices on imported goods, which leads to higher prices in the overall market.

In the short term, tariffs can benefit domestic businesses and government revenue due to increased prices. However, in the long run, this can lead to a decline in efficiency and profits for businesses as they face less competition.

Increased prices, especially on foodstuffs, can lead to a decrease in disposable income for consumers, increasing the demand for public services.

Tariffs are a trade barrier that can benefit producers by protecting them from foreign competition, but they are often detrimental to consumers who end up paying higher prices.

Tariffs and trade barriers can have both positive and negative impacts on businesses, consumers, and the government, with the effects varying over time.

The presence of a tariff causes a higher price for imported goods, leading to an increase in domestic production and a decrease in imports. This results in higher consumer prices.