Sections
Key Terms
Key Terms
- antidumping laws
- laws that block imports sold below the cost of production and impose tariffs that would increase the price of these imports to reflect their cost of production
- common market
- economic agreement between countries to allow free trade in goods, services, labor, and financial capital between members while having a common external trade policy
- disruptive market change
- innovative new product or production technology which disrupts the status quo in a market, leading the innovators to earn more income and profits and the other firms to lose income and profits, unless they can come up with their own innovations
- dumping
- selling internationally traded goods below their cost of production
- economic union
- economic agreement between countries to allow free trade between members, a common external trade policy, and coordinated monetary and fiscal policies
- free trade agreement
- economic agreement between countries to allow free trade between members
- General Agreement on Tariffs and Trade (GATT)
- forum in which nations could come together to negotiate reductions in tariffs and other barriers to trade; the precursor to the World Trade Organization
- import quotas
- numerical limits on the quantity of products that can be imported
- national interest argument
- the argument that there are compelling national interests against depending on key imports from other nations
- nontariff barriers
- ways a nation can draw up rules, regulations, inspections, and paperwork to make it more costly or difficult to import products
- protectionism
- government policies to reduce or block imports
- race to the bottom
- when production locates in countries with the lowest environmental (or other) standards, putting pressure on all countries to reduce their environmental standards
- World Trade Organization (WTO)
- organization that seeks to negotiate reductions in barriers to trade and to adjudicate complaints about violations of international trade policy; successor to the General Agreement on Tariffs and Trade (GATT)