|
|
Reciprocal trade agreement |
|
|
|
 Home Site Map Add Term Search About Us Contributors |
Reciprocal trade agreementAgreement between two countries to open their markets to each other's exports, usually by each reducing tariffs. Early trade rounds under the GATT consisted mostly of reciprocal trade agreements, extended to other contracting parties by the MFN requirement.Similar MatchesReciprocal dumpingReciprocal dumpingThe sale by firms from two countries into each others' markets for prices below what each charges at home. So called because the exports of both firms meet the price-discrimination definition of dumping. Brander and Krugman (1983) introduced the term and showed that this is likely to happen in an international duopoly with transport costs. Reciprocal demandReciprocal demandThe concept that, in international trade, it is not just supply and demand that interact, but demand and demand. That is, a trading equilibrium is a reciprocal equilibrium in which one country's demand for another country's products (and willingness to pay for them with its own) matches with the other country's demands for the products of the first. Reciprocal linkingReciprocal linkingAn agreement between two webmasters to place hyperlinks on their own websites leading to each other's wehsite. Reciprocal demand curveReciprocal demand curveAn offer curve. So called to emphasize that a country exports in order, reciprocally, to get imports in return. |
|
|
|