-Strategy to replace imported goods and services by producing them domestically.

-The act of imposition of trade barriers on the importing of goods and resources by regulating the prices or quantity of the imported goods and resources so as to encourage the growth of local production. This is line with the notion of import substitution strategy, which involves the replacement of imports with local production.

-Tariffs or Custom Duties

-Quotas

-Import Licenses

-Embargos on Imports

-Subsidies

-Exchange Controls

-Protect growing industries

-May help to widen the scope of economic growth

-Prevent dumping

-Allow declining industries to phase out gradually

-Dampen impact of unemployment during recession

-Protect home industries from foreign competition

-Retaliate against another country

-Correct balance of payment disequilibrium

-Protect key industries to sustain economic growth

-Allow economy to be more self-sufficient

-Where a customs union results in greater specialization according to comparative advantage, and hence a shift in production from higher cost to lower cost sources.

-Foreign producers selling at a price below their cost

-Increase subsidies to local producers  - fall in COP – fall in Price of local goods – replace the more expensive imports

-Subsidized exporters and domestic producers will have lower the cost of production and thus enables the firms to lower the cost of production so as to lower the price of export goods to increase export demand while the domestic price of local goods will be lowered to substitute imported good

-Increase subsidies to lower cost of production – decrease price of export – increase in export demand

-The control of amount of foreign exchange available for imports which will indirectly control the value of import expenditures.

Custom duties or tax on imported goods and services by the government.

-Quantity restriction imposed on imported goods and services by the government.

-Complete ban on certain imports to or exports from a country

-Amount spent on importing goods and services from foreign country into the domestic country

-Encourage the growth research and development and investment in these areas

-Increase transparency of procurement process

-Increase business opportunity with foreign government

-An agreement where no tariff and trade restriction among the nations but a common tariff against other trading nations.

-Arises when there is a shift in trade from a high-cost producer to a low-cost member country.

-A trade agreement whereby trade between the signatories is freer than trade with the rest of the world. There will be no restriction of trading activities and regulation of the flow of investment and mobility of resources.

-An agreement where no tariff and trade restrictions among nations and they are to use a common monetary and fiscal policy.

-Amount earned from exporting goods and services from domestic country out to foreign country.

-It refers to the difference between the total value of goods and services exported to other nations and the total value of foreign goods and services spent by local economy

-Balance of trade  = Export revenue – Import Expenditure

-An industry that is just starting out and hence vulnerable to collapse when faced with more established foreign competition.

-It refers to the volume of production that can be attained over a fixed period of time.

-It refers to a highly-developed economy. For instance, USA is an advanced economy.

-It refers to a growing economy that is experiencing extensive growth and undergoing rapid industrialization. For instance, China and India are emerging economies.

-It refers to the amount of land, labor, entrepreneurship and money that can allocated for production within a country.

-It refers to an economic condition that affects the effectiveness of currency revaluation, when the sum of elasticity of demand for imports and exports is greater than one.

-It refers to the compulsory imposition of fine by the authorities on individuals, so as to deter certain consumer or producer behavior.

-It refers to the ease of flow of labor and capital from one point to another. (i.e. between countries, cities, firms, individuals)

-It refers to the reduction of government intervention in certain economic activities.

-It refers to the movement of funds to direct the movement of specific durable goods or raw materials.

-It refers to an organization of workers and employers to regulate the relations of those involved, so as to protect their interests.

-Also known as a form of protectionism, it involves the imposition of trade barriers by one country, in response to the protectionist measures imposed by the other country.

-It refers to the change in value of a currency against another currency due to certain economic conditions, like hot money.