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10 terms

IB Economics SL - International Economics - 24. Free Trade & Protectionism

STUDY
PLAY
Quota
a physical limit on the number or value of goods that can be imported into a country
Tariff
a tax that is charged on imported goods
Subsidy
an amount of money paid by the government to a firm, per unit of output
Voluntary Export Restaints (VERs)
agreements between exporting and importing countries in which the exporting country agrees to limit the quantity of exports of a specific good below a certain level
WTO
an international organization that sets the rules for global trading and resolves disputes between its member states
Free Trade
trade that takes place between countries when there are no barriers to trade put in place by governments or international organizations
Dumping
the selling by a country of large quantities of a commodity, at a price lower than its production cost, in another country
Over-Specialization
a country is over-dependent on the export sales of one or two products
"Red Tape"
the administrative process that has to be undertaken when importing goods
Embargo
an extreme quota; a complete ban on imports (usually put in place as a form of political punishment)