Trade policies and negotiations (OCR A-Level Economics): Flashcards

Actions to impose restrictions on trade in goods & services

Tax on imported goods to raise price vs domestic products

Physical limit on quantity of imported goods

Agreement to remove trade barriers for free flow of goods/services between countries

Countries agreeing not to use protectionist policies between them

Remove trade restrictions among members, set common external tariffs

Free trade in goods, services, and factor markets

Common market with addition of shared currency

Fully integrated economies with fiscal & monetary union

Encourages free trade by removing protectionism, esp. tariffs

When barriers reduced: replacing high-cost domestic with low-cost imports

Shifting from lower-cost outside to higher-cost inside supplier

Safeguard jobs, protect industries, security, reduce deficits

Makes imports more expensive and less competitive

Restricts supply & potentially raises prices for consumers