International Trade Prefinals Quiz 2 (finals Reviewer)

is a tax levied on imports (or exports).

levied on a fixed charge for each unit of goods imported.

levied as a proportion of the value of the imported goods.

is a government payment to a domestic producer.

FORMS OF SUBSIDIES

This sector tends to be one of the largest beneficiaries of subsidies in most countries.

_____ help domestic firms achieve a dominant position in those industries in which economies of scale are important and he world market is not large enough to profitably support more than a few firms.

•can help a firm achieve a first-mover advantage in an emerging industry.

is a direct restriction on the quantity of some goods that may be imported to a country. The restriction is usually enforced by issuing import licenses to group of individuals or firms.

•A common hybrid of tariff and quota

•A lower tariff rate is applied to imports within the quota than those over the quota.