Reciprocal trade agreement

 

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Reciprocal trade agreement

Agreement 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 Matches

Reciprocal demand

Reciprocal demand

The 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 linking

Reciprocal linking

An agreement between two webmasters to place hyperlinks on their own websites leading to each other's wehsite.


Reciprocal dumping

Reciprocal dumping

The 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 demand curve

Reciprocal demand curve

An offer curve. So called to emphasize that a country exports in order, reciprocally, to get imports in return.




 
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