Q1: define and provide two examples of tariff and non tariff?

Trade barriers: used to encourage and protect the domestic production and it is two types: tariff and non-tariffs barriers. Tariff barriers: A taxes imposed by the government on imported and exported commodities into or out of a country or a region. EX: When goods are brought into the Netherlands from a country outside the European Union (EU), Customs charges tax on them. The amount of tax depends on the country of origin and the kind of product. Non-tariff barriers: another way for the government to control the amount of trade with other countries. Quotas-Licensing-Voluntary export restraints-Administered protection -State trading canalization 1- Quotas: A quota may be defined as it sets the total amount to be traded. Ex: US Sugar Import Quota: The US initiated the import quota system for sugar in the early 1980s. Since then the world price of sugar has ranged from less than 5 cents to 13 cents per pound. Recently the world price has been below 10 cents. Within the US the price has mostly ranged between 20 and 24 cents. 2- Voluntary export restraints: bilateral arrangement sinstituted to restrain the rapid growth of exports to specific manufactured goods. Ex: Japan imposed a VER on its auto exports into the U.S. as a result of American pressure in the 1980s. The VER subsequently gave the U.S. auto industry some protection against a flood of foreign competition. Q2: Define the country of origin (coo), and the country image? Coo: is the producing country of a specific product, or where that product has made. Country Image: It is about what a person thinks about a certain country. It is measured by a country image scale: answering questions such as high/ low standard of living, labor cost, and high / low literacy rate.

Q3: explain subsidiaries, and how it impact trade, and what are its consequences on people and country? Subsidies: how the government supports a local producer so he or she can export and be more competitive in the international market. As a result, the product will be much cheaper in the domestic country so people will benefit from that, while the country will be more powerful in the international market by its exporting amount. Ex: sugar producers in European Union. Who benefits: the European producers Who doesn't: producers of the country you are exporting to. Q4: explain GINI index: GINI index: it Measure the inequality among values of a distribution, and it is presented by 0-100 scale when zero refer to maximum equality and 100 refer to maximum inequality. Q5: why is GDP/CAPITA is not a good indicator for selecting a specific market. GDP/ capita: Is a measurement of how prosperous a country feels to each of its Citizen. Because, it could be easily affected by the individual wealth. Also, it doesnt present the real value of every persons wealth. Q6: explain PPP? Purchasing power Parity: it is how much money is needed to purchase the same goods and services in countries, and then using that to calculate an implicit foreign exchange rate.