One side
Balance
Medium of exchange
Restrictions
Getting together
100
A growing economy will tend to buy more of these.
What are imports?
100
The price of a currency expressed in terms of another currency.
What is an exchange rate?
100
An international institution aimed at promoting free trade by persuading countries to abolish import tariffs and other barriers.
What is the World Trade Organization?
100
When governments of of two or more countries sign agreements to liberalize trade.
What is economic integration or a trading bloc?
200
(HL) When one country can produce more of a good or service with the same amount of resources than another country can.
What is absolute advantage?
200
Expectations concerning the future path of the exchange rate will often draw more of these into the market.
What are speculators?
200
A system where market forces alone determine the value.
What is a floating (or flexible) exchange rate system?
200
These restrict trade by quantity.
What are quotas?
200
(HL) This occurs when an increase in imports displaces less-efficient domestic producers.?
What is trade creation?
300
A loser when tariffs are applied to an import?
What is the consumer (final or intermediate) or foreign producer?
300
The rate that equates the cost of purchasing the same basket of goods in two countries.
What is purchasing power parity?
300
Official increase in the price of a currency in a fixed exchange rate system?
What is revaluation?
300
Examples of these are health and safety standards, environmental standards, and quality.
What are non-tariff barriers (NTBs)?
300
(HL) This occurs when imports shift from an efficient non-member to a less-efficient member.
What is trade diversion?
400
This results in the future repayment of capital plus interest and can reduce government supplies of foreign reserve assets?
What is international borrowing or debt?
400
A record of all transactions of a county with the rest of the world over a period of time.
What is balance of payments?
400
This occurs when foreigners increase their purchases of domestic goods and services.
What is an increase in demand for a currency?
400
Used by importing countries to restrict imports being sold at a price less than production costs.
What are countervailing duties?
400
This is the process of reducing or eliminating trade barriers.
What is trade liberalization?
500
When countries open up to free trade and concentrate their resources in one or few industries.
What is specialization?
500
When the value of imports of goods and services is greater than the value of exports of goods and services.
What is a current account (or trade) deficit?
500
The y-axis label in a diagram showing the supply and demand for the Mexican peso.
What is the price of the peso in terms of foreign currency or the foreign currency vale of the peso?
500
Trade disputes can be destablizing and bring this about?
What is retaliation?
500
This forms when members of an economic union sign an agreement to adopt a single currency?
What is monetary union?
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