Law and Economics of International Trade

Subsidies are government payments to domestic producers, which can help them compete with foreign producers. They are not a type of trade barrier.

Comparative advantage refers to the ability of a country to produce a good or service at a lower opportunity cost than another country.

The MFN principle requires countries to treat all trading partners equally, meaning that they cannot discriminate against any particular country.

The WTO is responsible for promoting free trade, resolving trade disputes, and setting trade rules.

The GATT was signed in 1947 and was the predecessor to the WTO.

NAFTA was signed between Canada, Mexico, and the United States in 1994.

The EU is an economic and monetary union, meaning that it has a single currency (the euro) and a common monetary policy.

ASEAN is a free trade area, meaning that member countries have agreed to eliminate tariffs and other trade barriers on goods traded among themselves.

The AU is a free trade area, meaning that member countries have agreed to eliminate tariffs and other trade barriers on goods traded among themselves.

The World Bank is a development bank that provides financial assistance to developing countries.

The IMF is a central bank that provides financial assistance to countries experiencing balance of payments problems.

UNCTAD is a trade agency that promotes trade and development.

UNIDO is a development agency that promotes industrial development.

The ITC is a trade agency that promotes trade between developing countries and developed countries.

WIPO is an investment agency that promotes the protection of intellectual property.