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Foreign trade - Coggle Diagram
Foreign trade
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Proportional import quotas and direct production subsidies and Voluntary import quotas, administrative distortions and Import and consumption subsidies
Direct subsidies to production They are current payments, without compensation, that the Federal Government makes to companies based on their participation in production; used as a means to the government, to make market prices of some goods or services more accessible
It is an economic policy that seeks to protect the production and jobs of a country by imposing restrictions, limitations or tariffs on goods or services from abroad (imports), making them more expensive to make them less competitive compared to national ones.
Administrative Trade Distortions Trade distortion occurs when prices are higher or lower than normal and when quantities produced, bought and sold are also higher or lower than normal, that is, at levels that would normally exist in a competitive market.
mport quotas are a commercial policy instrument through which a country establishes limits on the import of certain products according to the commercial strategy that it wants to carry out.
Rates and Fees
A rate is the fee, or the list of fees, that must be paid by a consumer or user who wishes to acquire a good, as well as use a certain service. The rate is established in the price policy of a company, or in parliamentary headquarters. In this sense, said rate can be public or private.
Selection of a tariff rate Regardless of whether a tariff is bound or applied on preferential versus non-discriminatory terms, it can take various forms. The most common form is an ad valorem tariff, which means that the customs duty is calculated as a % of the value of the product. The tariff schedules of many countries also include a variety of non-ad valorem tariffs.
Tariffs. A tariff is a tax or levy that applies only to goods that are imported or exported. The most common is the one charged on imports. In the case of Peru and many other countries, tariffs are not applied to exports.
Quotas. The quota is an amount of money that is paid on a regular basis and that can go with interest proportional to the amount that was granted to us. For example, you buy a PC and you see that you cannot pay for it at the moment and that is why you decide that you want to pay in 12 months; this is called quotas.
Expansion of exports through guaranteed prices, subsidies and promotions
dumping Dumping is, in general, a situation of international price discrimination: the price of a product, when it is sold in the importing country, is lower than the price at which that product is sold in the market of the exporting country.
Export subsidies. An export subsidy is a benefit conferred on a company by the government that is contingent on export. A domestic subsidy is a benefit not directly related to exports.
An export subsidy is a payment made to a company or individual that sells a good in another country. Export subsidies are intended to support national companies in international markets.
The promotion of exports is offered by the government of each country, due to the need to assume it to stimulate exports, in order to improve the competitiveness of companies in the domestic market and in foreign markets and reduce the trade balance deficit.
Trade allows each economy to specialize and export the goods and services it can produce cheaply and import those it cannot. This promotes the growth of the most competitive sectors and companies in the country, while expanding the margin of choice for consumers at lower prices.
The economic impacts of subsidies tend to be significant, since they consume the revenues and taxes collected by the government and thereby divert valuable resources away from productive sectors to keep the price below its true value.