Textbook Notes (362,882)
Canada (158,081)
Economics (800)
ECON 1100 (224)
Chapter 15

Chapter 15

2 Pages
Unlock Document

University of Guelph
ECON 1100
Eveline Adomait

Chapter 15: International Trade and Trade Policy Key Terms Open Economy: an economy that trades with other countries Closed Economy: an economy that does not trade with the rest of the world World Price: the price at which a good or service is traded on international markets Tariff: a tax imposed on an imported good Import Quota: a legal limit placed on the quantity of a good that may be imported Protective Tariff: a tax on imported goods, the intention is to shield domestic industry from import competition Revenue Tariff: a tax imposed on imported goods, for the purpose of collecting government revenue Department of Foreign Affairs and International Trade (DFAIT): department of Canada’s federal government led by multiple cabinet ministers Multilateral Agreement: document signed by representative of many nations to express their acceptance of the principles set out in the document General Agreement of Tariffs and Trade (GATT): a multilateral agreement dating back to the late 1940’s that, through numerous rounds of trade negotiations, led to reduced tariffs and quotas among many countries Most-Favoured Nation (MFN) Treatment: agreement that any special arrangement, such as reduced tariff that is offered to one country in the interests of opening up a market must be offered to all other members National Treatment: once a good has entered a country it must be treated as equivalent to a domestically produced good of the same type for purposes of taxation and regulation Fair Competition: the practice of discouraging both export subsidies and the dumping of products on foreign products at below cost in order to gain market share World Trade Organization (WTO): official international trade body headquartered in Geneva that began operations in 1995 Regional Trade Agreement: aims to reduce restrictions on international trade between two or more countries Free Trade Area: involves two or more countries that agree to eliminate tariffs and other trade restrictions on most or all mutual trade of their own goods/services Customs Union: two or more countries that not only agree to eliminate tariffs and other trade restrictions on most or all mutual trade, but also agree to a common set of trade barriers to imports from non-member countries Common Market: two or more countries eliminating trade restrictions on most or all mutual trade, maintaining a common set of trade barriers against non-member countries and permitting mobility of capital and labour among member countries Economic and Monet
More Less

Related notes for ECON 1100

Log In


Don't have an account?

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.