Free Trade & Protectionism
This is one benefit trade that allows shoppers to spend less and shop more.
What is lower prices?
This type of advantage refers to a country's ability to produce a good using fewer resources than another country.
What is absolute advantage?
This occurs when countries work together to coordinate economic policies.
What is economic integration?
This international organization was created to set rules for global trade and resolve disputes between member states.
What is the World Trade Organization (WTO)?
Size of production increases when producing worldwide, lowering the long-run average cost of production
What is Economies of Scale?
This protectionist tool is a tax placed on imports to raise their prices.
What is a tariff?
This concept helps determine which good a country should specialize in by comparing opportunity costs.
What is comparative advantage?
This stage of economic integration involves reducing trade barriers for some countries but not all, showing favoritism.
What is a preferntial trading area?
This occurs when a customs union shifts production from a high-cost producer to a low-cost one, improving world effciency.
What is trade creation?
The condition that an exchange rate devaluation or depreciation will only cause a balance of trade improvement if the absolute sum of the long-term export and import demand elasticities is greater than one.
What is the Marshall-Lerner Condition?
This is a benefit for a country that implements a tariff.
What is to protect infant/sunshine domestic industries?
Country A can produce 3 units of Good 1 or 8 units of Good 2. Country B can produce 5 units of Good 1 or 2 units of Good 2. Based on opportunity cost, this country has the comparative advantage in Good 2.
What is Country A?
This type of agreement allows countries to trade freely within the group while keeping their own rules for outsiders.
What is a free trade area?
This potential downside of joining a monetary union limits a countyr's ability to control its own interest an exchange rates.
What is the loss of independent monetary policy?
This is the name of Alicia's dog. He is the adorable, he is also short, uhhhh sometimes werid looking he has bad hair days like all of us but hes such a sweetheart!
Who is Milo?
This term describes when a country sells goods abroad at a price lower than the cost of production.
What is dumping?
This is the term for when a country sacrifices producing one good to make more of another, and it's key to calculting comparative advantage.
What is opportunity cost?
In this stage, countries allow free trade between each other and share a common trade policy toward outsiders.
What is a customs union?
This situation arises when a country joins a customs union and replaces cheaper external imports with more expensive ones from within the union.
What is trade diversion?
This disney princess is the main character of Marquitta's favorite movie.
Who is Princess Tiana?
One of the negatives of this paticular trade policy may lead to retaliation from other countries, potentially causing a trade war.
What is protectionism?
This is one real world reason why a country might not follow the theory of comparatve advantage, even if they have it.
What is trade barriers, non-homogenous goods, political reasons,protection of strategic industries, transport costs, external costs, and factor mobility?
This stage of economic inegration includes ashared currency, central bank, and unified economic policy with no national control.
This paradox of trading blocs is listed as both an advantage and a disadvantage, depending on how it affects market outcomes.
What is increased competition?
This jazz group has made hit songs, "Can I Call You Rose", "Willl I See You Again", and "Easier Said Then Done". This is also Roman's favorite jazz group.
Who is Thee Sacred Souls?