Midterm definitions ECO3701 100% TRUSTED workings, explanations and solutions. .

ECO3701 Midterm
definitions
ECO3701





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, Midterm definitions ECO3701

1. -Products that are not produced with abundant factors.
-Points out a weakness in the Heckscher-Ohlin Model of international trade.
-Points out that technology and skill content must be considered: Leontief
Paradox
2. Selling a product abroad for more than at home.
.
Countries are permitted to use tariffs or taxes to penalize for the violation.: -
Define dumping.

How does the GATT/WTO allow members to deal with it?
3. An agreement on the part of a set of countries to:
-eliminate trade restrictions among themselves

e.g. NAFTA: Free Trade Area/Preferential Trade agreement (FTA/PTA)
4. An agreement on the part of a set of countries to:
-eliminate trade restrictions among themselves, and to;
-adopt a common external tariff.

e.g. EAC (East African Community): Customs Union
5. An agreement on the part of a set of countries to:
-eliminate trade restrictions among themselves,
-adopt a common external tariff, and;
-allow the free movement of labor and physical capital among member coun-
tries.

e.g. MERCOSUR (South America): Common Market
6. A common market that adopts a common currency and adopts a common
monetary policy.
e.g. Some parts of the EU: Monetary Union
7. A monetary union that adopts a process of domestic policy harmonization
in areas such as tax and spending policies and domestic regulation.: Economic
Union
8. Consumer Surplus?: A B C D (flip card)




9. Should we Import or Export?: Import (Flip card)

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