International contestability of markets
International contestability of markets: used for assessing the extent to which markets are free of distortion through regulation and anti- competitive governmental or private action from the perspective of exporters in other countries. A fully contestable market would be one in which firms can compete purely on the basis of price and ability to deliver the product or service wanted by the market. International contestability is therefore determined by such factors as tariff and non-tariff measures, regulatory conditions affecting the import of services, structural impediments in the form of, for example, distribution systems, internal regulation of investment and competition, and private anti-competitive practices. See also indicators of market openness and trade and competition.
Source: http://ctrc.sice.oas.org/trc/WTO/Documents/Dictionary%20of%20trade%20%20policy%20terms.pdf
Web site to visit: http://ctrc.sice.oas.org
Author of the text: W. Goode
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