Economics of International Trade: Terms, Concepts, and Theories, Quizzes of Nutrition

Download Economics of International Trade: Terms, Concepts, and Theories and more Quizzes Nutrition in PDF only on Docsity! TERM 1 liberalization DEFINITION 1 freer trade, open markets with no barriers to trade, getting rid of policies that restrict trade (such as tariffs) TERM 2 why do we want liberalization DEFINITION 2 benefits from specialization, trade/exchange, law of comparative advantage TERM 3 tariff DEFINITION 3 taxes on imported goods that will induce consumers to favor buying domestically produced goods TERM 4 non tariff barrier DEFINITION 4 sneaky way to implement protectionist trade policies without using tariffs, quotas on imported goods, subsidies to domestic producer, safety restrictions ex: eu and hormones in US beef TERM 5 comparative advantage DEFINITION 5 countries should make things according to their comparative advantagethey should produce whatever has the lowest opportunity cost TERM 6 heckscher-Olin theorem DEFINITION 6 predicts that countries will follow their comparative advantage, making use of their abundant factor of production TERM 7 factors of production DEFINITION 7 land, labor, capital, and human capital TERM 8 stolper samuelson theorem DEFINITION 8 free trade policies help certain segments of the population and hurt othersthe gains for people who benefit are larger than the losses for those who lose out, the people who own the scarce factor of production will be harmed by free trade policies TERM 9 political conflict and trade DEFINITION 9 trade creates political conflict between owners of different factors and industries (import vs export oriented) TERM 10 dependency theory DEFINITION 10 attributes underdevelopment to trade between rich/poorraw materials come from poor and go to wealthy countries, wealthy use to manufacture then back to poor countriesimport substitution industrialization TERM 21 which countries are more likely to get concession in WTO disputes DEFINITION 21 developing countries get full concessions 50% of the time under two 36% under gatt TERM 22 which countries benefit more from bargaining and legal structure of wto DEFINITION 22 developed countries more than developinggap between the two has grownwealthier countries have more bargaining leverage due to higher acceptability of reversion outcomeadditionally wealthier states have greater legal capacity TERM 23 imf and exchange rates DEFINITION 23 exchange rates affect trade and investment, cheaper currency can help promote exportsimf promotesstable exchange relationships TERM 24 bretton woods system DEFINITION 24 held near the end of WWIIcreated IMF, GATT, and World BankIMF originally created to regulate exchange ratesall currencies were pegged to the US dollar, US dollar pegged to gold, became unsustainable, led to floating exchange rates TERM 25 transformation of IMF after bretton woods DEFINITION 25 recreates itself as a lending institution, since the main reason it was created no longer exists TERM 26 World bank and reconstruction DEFINITION 26 WB designed to provide reconstruction loans after WWIIafterwards, private capital not readily available but europe needs to be rebuilt TERM 27 present role of WB DEFINITION 27 begins to provide assistance to developing nationsbegan to fund for development-infrastructure, low interest loans, technical assistance, policy advice TERM 28 IMF conditionalities DEFINITION 28 purpose of conditions: austerity measures, minimalism, purposefully depriving of certain things, reduction in spending, increase revenue, usually raise taxes, restructure and sell national industries, currency devaluation, trade liberalization,reduction in spending and increase in revenue are almost always guarantees TERM 29 short term effects of conditions DEFINITION 29 austerity measures harm the poorpolicies will cause short term harm to economythis hurts poor people more than rich TERM 30 signaling effect of IMF DEFINITION 30 main effect may be to send signal to private creditors TERM 31 problems with assessing long term effects of IMF DEFINITION 31 little evidence that growth improves, compliance with policy recommendations is not perfect at outset TERM 32 effect of IMF on long-term growth DEFINITION 32 growth rates in developing country would've increased since IMFsome glaring successes, also glaring failuresempirical problem: IMF participation isn't randomaccounting for participation is difficultgrowth is lower for countries that borrow