International Business Chapter 6 - business-government trade relations -terms

Free-trade -- pattern of imports and exports that would result in the absence of trade barriers
subsidy -- financial assistance to domestic producers in the form of cash payments, low interest loans, tax breaks, product price supports, or some other form
foreign trade zone (FTZ) -- designated geographic region in which merchandise is allowed to pass through with a lower customs duties (taxes) and/or fewer customs procedures.
Tariff -- government tax levied on a product as it enters or leaves a country.
Ad valorem tariff -- tariff levied as a percentage of the stated price of imported product
specific tariff -- tariff levied as a specific fee for each unit (measured by number, weight, etc.) of an imported product.
Compound tariff -- tariff levied on an imported product in calculated partly as a percentage of its stated price and partly as a specific fee for each unit.
Quota -- restriction on the amount of a good they can enter or leave a country during a certain period of time
voluntary export restraint (VER) -- unique version of export quota that a nation imposes on its exports, usually at the request of an importing nation.
Tariff-quota -- lower tariff rate for a certain quantity of imports into higher rate for quantities that exceed the quota.
Embargo -- complete ban on trade (imports and exports). In one or more products with particular country.
Administrative delays -- regulatory controls or bureaucratic rules designed to impair the rapid flow of imports into a country.
Currency controls -- restrictions on the convertibility of a currency into other currencies.
Normal trade relations -- requirement that WTO members extend the same favorable terms of trade to all members that they extend to any single member.
Dumping -- practice of exporting a product at a price either lower than the price that the product only command and its domestic market or lower than the cost of production.
Anti-dumping duty -- additional tariff placed on an imported product that a nation believes is being dumped on its market.
Countervailing duty -- additional tariff placed on an imported product that a nation believes is receiving an unfair subsidy.