INTB 1209 Study Guide - Midterm Guide: Management Styles, Countervailing Duties, Infant Industry Argument
18 Feb 2020
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1990 porter: why certain nations have success in specific industries. Creation of porter"s diamond: factor endowments. Sophisticated customers want high quality and innovation. They influence capabilities development: related and supporting industries. Knowledge flow between industrial clusters creates development. Investing in competitive industries can create new ones: firm strategy, structure, and rivalry. Might need to trade it globally to get the advantage. Free trade: no government attempt to restrict buying from or selling to other nations. Most nations need government intervention to protect the interest of politically important groups. Tariffs: a tax on imports that raises the costs of imported goods. Ad valorem: proportional to value of goods. Reduce the efficiency of the world economy. Subsidies: government payment to producers to decrease production costs. Import quotas: direct restriction on quantity imported into a country. Quota rent: extra revenue made by foreign producers as a result of increased prices. Voluntary export restraints: quota imposed by exporting country.
