- Industry: Education
- Number of terms: 31274
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1. Any objective of economic policy. 2. The value of an economic variable that policy makers regard as ideal and use as the basis for setting policy. Contrasts with instrument. 3. The level of an exchange rate that guides exchange market intervention by a central bank or exchange stabilization fund.
Industry:Economy
A tax on trade, usually an import tariff but sometimes used to denote an export tax. Tariffs may be ad valorem or specific.
Industry:Economy
A commitment, under the GATT, by a country not to raise the tariff on an item above a specified level, called the bound rate or bound tariff.
Industry:Economy
A production facility established by a foreign firm through FDI in a country in spite of its higher production costs, in order to serve its market without paying a tariff.
Industry:Economy
A lower (or zero) tariff on a product from one country than is applied to imports from most countries. This violation of the MFN principle is permitted in special cases, including some preferential trade arrangements and the GSP.
Industry:Economy
A combination of an import tariff and an import quota in which imports below a specified quantity enter at a low (or zero) tariff and imports above that quantity enter at a higher tariff. Also called a tariff quota.
Industry:Economy
A tariff, presumably a high one, perhaps in lots of industries. The term is used to highlight the difficulty foreign sellers have in getting their products past the tariff, often in the context of the incentive therefore provided for FDI. See foreign investment argument for protection.
Industry:Economy
A measure of how rapidly the actual revenue from a tax rises (including that due to any change in the tax law) as the tax base rises. It is defined, like an elasticity, as %''R'' / %''B'' where ''R'' is the real revenue from the tax, ''B'' is the real tax base, and % is percent change. It differs from tax elasticity in not holding the tax law constant.
Industry:Economy
A special provision for a firm not to pay a tax that it would otherwise owe, provided by a local, state, or national government as an inducement to invest. Competition among governments, seeking to attract investment, to some extent undermines the benefits that countries might otherwise receive from FDI.
Industry:Economy
