Revision of Arbitration and International trade

1. What is arbitration? Its a process for dispute resolution on a private basic by appointing arbitrator and he/she will make a decision. 2. What is dispute resolution? Its the way to settle disagreement. 3. What is home-team advantage? Its benefit from being local. 4. What is local bias? Its unfair treatment. 5. What are delaying tactics? Way of making things taking a long time. 6. What are the advantage of arbitration over court adjudication? expertise of arbitration lower cost fast flexible confidential

7. Which are the main arbitration centers? Paris, London, Geneva, Stockholm, New York, Hong Kong, Singapore. 8. What may decide the choice of venue for arbitration? <p. 48 textbook> 9. What do clients look for from an arbitration service? Speed, cost effectiveness, confidentiality, reliability of the arbitrators and hence their decisions.

10. How is a forum made up for a neutral arbitration? 3 arbitrators, one chosen by each party and the third, one chairman is selected by both parties. 11. What is balance of payment? The difference between a countrys total earnings from exports and its total expenditure on imports. 12. What is balance of trade? The difference between what a country receives and pays for it export and import of goods. 13. What are tariffs? Taxes charge on import. 14. What are quotas? Quantitative limitation the import of popular products or commodities. 15. What is an autarky? Impossible situation in which a country is completely self sufficient and has no foreign trade. 16. What can give a country an absolute or comparative advantage in goods and services over other products? Factor of production Raw materials Labor, capital Climate Economies of scale

17. Why does the theory of comparative advantage seem inadequate to explain international trade? Because it does not explain why the majority of the exports of advanced industrialized country go to other very similar countries.

18. What is an infant industry? a recently developed not yet grown to the point where it can benefit from economies of scale, or can be internationally completive. 19. What is the advantage of tariffs for the government? Tariffs produce revenue. 20. What is the advantage of quotas over tariffs? The maximum quantity of goods will be reported. 21. What is absolute advantage? The principle which refers to the ability of a party ( an individual, firm, country) to produce more of a good or service than competitors, using the same amount of resources. 22. What is comparative advantage? The principle which refers to the ability to produce a particular good at a lower opportunity cost. 23. What are the reason for imposing tariffs? protect domestic firms from foreign competitors reduce balance of payment deficits raise government revenue protect fledging domestic industries protect domestic producers from dumping

24. What are the reason for imposing quotas? Setting limit of imported items.