Foreign Exchange
The 3 reason we need foreign currency.
What are travel and tourism, purchases of foreign goods, and Investments?
Two examples of NTBs
What are Health and Safety Restrictions, Voluntary Export Restraints, Quotas.
The argument for trade restriction that protects industries during peace time, so they are still around during times of war.
What is the national defense argument?
Eliminates trade barriers among members, maintains independent policies towards nonmembers. Ex: NAFTA
What is Free Trade Area?
Given a current exchange rate of $1 for 0.80 British Pounds, when you return from Europe and exchange 100 pounds, the number of dollars you will receive.
What is $125?
A foreign government agrees to restrict trade of its own exports into another market
What are VERs (voluntary export restraints)?
The effect on U.S. jobs if our government places a tariff on Mexican textiles.
What is an increase in U.S. textile jobs and a decrease in downstream industry jobs due to higher textile prices?
Eliminates trade barriers among members, adopts common policies towards nonmembers. Free movement of resources among members, uniform set of economic policies. Ex: EU
What is Economic Union?
2 Part Answer: The change in demand for dollars and the change in exchange rate for dollars, if the United States has higher interest rates compared to Great Britain.
What is ↑D$ and appreciate
The industries who tend to receive trade restriction protection from their government.
What is industries with a comparative disadvantage relative to foreign producers.
Why government revenue increase is a bad argument for trade restrictions in the U.S.
What is the revenue increases are very small?
Does not address nonmembers, lowers but does not eliminate trade barriers.
What is a Preferential Trade Area?
What happens to the market price for Brazilian Reals in the summer of 2016 as people arrive in Brazil for the summer Olympics.
What is increase?
The organization that removes trade restrictions from infant industries.
What is the ITC (international Trade Commission)?
The recipients of subsidies when attempting "export promotion" by a government.
What is domestic producers?
Eliminates trade barriers among members, adopts common policies towards nonmembers, and allows free movement of resources among members. Ex: Mercosur
What is Common Market?
The effect on British exports to the U.S. as the pound depreciates in value against the dollar.
What is increases?
The organization who settles trade disputes.
What is the WTO (World Trade Organization)?
The resulting domestic argument for protection when a foreign government offers its producers a subsidy.
What is level the playing field?
Eliminates trade barriers among members, adopt common policies towards nonmembers. Ex: Russia/Kazakhstan/Belarus
What is a Customs Union?