IE PRESENTATION

 What do trade policies refer to?

•  Domestic taxation rules
  

•  Employment laws within a country

• Rules and agreements governing international trade
  

• Regulations on local businesses

Who sets a country’s trade policy?

• The government

• Private companies

•  International organizations

•  Local communities

What does a free trade policy emphasize?

•  High government intervention in trade

• Regulation of only domestic trade

• Complete prohibition of exports and imports

• Very little or no government intervention in trade

What is protectionism?

•  A policy where governments avoid regulating trade entirely

• A method of increasing exports by reducing import taxes

• A policy where the government regulates trade to protect domestic industries

• A system that protects international trade agreements

What is a tariff?

• A tax on imported goods or services

•  A discount on exported goods

• A loan provided to importers

•  A fee for domestic transportation

 How is an ad valorem tariff calculated?

• By the distance between the exporter and importe

• As a fixed amount per unit of the imported good

• As a percentage of the total value of the imported goods

• Based on the weight of the goods

What is a specific tariff?

•  A fixed rate charged per unit of the imported good

•  A tax based on the total value of goods

• A tax on goods produced domestically

• A percentage-based tax on imported services

If the value of imported goods is $1,500 and the ad valorem tariff rate is 15%, what is the tariff amount?

• $150

•  $100

•  $300

•  $225

What is an import quota?

•  A tax on all imported goods
  

• A subsidy for domestic producers

• A restriction on the amount of goods or services that can be imported within a set time frame

• A policy to encourage free trade

 What happens under an absolute quota once the limit is reached?

• No more of the goods can be imported

•  Imports continue with higher tariffs

• Imports require government approval

• Goods are subject to subsidies