A
fall in the price of a currency through the action of supply and demand
depreciation
agency whose member governments offer monetary advice and provide loans to developing nations
IMF (International Monetary Fund)
good bought from companies in other countries for domestic use
imports
lowering a currency's value in relation to other currencies by government order
restriction imposed on the number of units of a particular good that can be brought into the country
import quota
people who argue for trade restrictions to protect domestic industries
protectionists
tax on imports used primarily to raise government revenue without restricting imports
revenue tariff
tax placed on an imported product
tariff
system under which a national government sets the value of its currency in relation to a single standard
fixed rate of exchange
markets dealing in buying and selling foreign currency for businesses that want to import goods from other countries
foreign exchange markets
ability of a country to produce a product at a lower opportunity cost than another country
comparative advantage
difference between the value of a nation's exports and its imports
balance of trade
arrangement in which the forces of supply and demand are allowed to set the price of various currencies
flexible exchange rate
tax on imports used to raise the cost of imported goods and thereby protect domestic producers
protective tariff
complete restriction on the import or export of goods
embargo
the price of one nation's currency in terms of another nation's currency
exchange rate
ability of one country, using the same quantity of resources as a another, to produce a particular product at a lower absolute cost
absolute advantage
concept that a nation should produce and export a limited assortment of goods for which it is particularly suited in order to remain profitable
specialization