An import duty levied as a percentage of the invoice value of imported goods.
Ad valorem duty
Selling a product abroad for less than the cost of production, the price in the home market, or the price to third countries
Dumping
What theory talks about the early entrant into a market can establish brand recognition, secure customer loyalty, and capture a substantial market share before competitors enter-
First mover theory
This theory was proposed by economist Staffan Linder in 1961
Theory of overlapping demand
Economies of scale and the _________ affect international trade because they permit a nation's industries to become low-cost producers without having an abundance of a certain class of production factors.
experience curve
Porter's competitive advantage of nations is also known as:
the Diamond Model
According to Porter, there are four interrelated determinants that shape a nation's competitive advantage:
Demand conditions; factor conditions; related and supporting industries; firm strategy, structure and rivalry
Occurs because of relative price differences among nations.
International trade
Name the 5 arguments for trade restrictions that we saw on class
National defense; protect infant industry; protect domestic jobs from cheap foreing labor; scientific tarrif or fair competition and retaliation,
If competition from foreign firms drives these companies out of business and leaves this country dependent on imports, those imports may not be available in wartime.
National Defense
Is it true or false that a downside of protect infant industry from foreign competition by high import duties, the company managers have little reason to improve efficiency or product quality?
True
Tell me one falacy of Protect Domestic Jobs from cheap foreing labor
1: wage costs are neither all of the production cost nor all of the labor cost. 2. failure to consider the cost of other factors of production.
Most government __________ when dumping injures local industry.
retaliate
