Trade Advantages
Free Trade Movement
Trade Barriers
Foreign Currencies
Vocabulary
100
Goods and services that one country buys from other countries.
What is imports?
100
Provision allowing a country to receive the same tariff reduction the United States negotiates with a third country.
What is most favored nation clause?
100
Means of preventing a foreign product or service from freely entering a nation's territory
What is trade barrier?
100
The price of one country's currency in terms of another country's currency.
What is exchange rate?
100
Value of products imported exceeds the value of products exported.
What is trade deficit?
200
This is when a country had the ability to produce more of a given product using a given amount of resources
What is absolute advantage?
200
Extended tariff concessionc and worked to do away with import quotas.
What is The General Agreement on Tariffs and Trade (GATT)?
200
A tax on imported good.
What is a tariff?
200
An increase in the value of currency.
What is appreciation?
200
The belief of new or emerging industries should be protected from foreign competition.
What is infant industries argument?
300
This is a key factor in determing comparative advantage
What is opportunity cost?
300
An international agency that administers previous GATT trade agreements, settles disputes between governments, organizes trade negotiations,and provides technical assistance and training for developing countries.
What is World Trade Organization (WTO)?
300
a tariff high enough to protect less-efficient domestic industries.
What is a protective tariff?
300
The Price of one currency is fixed in terms of another so that the rate does not change.
What is fixed exchange rates?
300
Favor trade barriers that protect domestic industries.
What is protectionists?
400
The goods and services that a country produces and then sells to other nations.
What is exports?
400
Most restrictive tariff in history.
What is the Smoot-Hawley Tariff?
400
A limit on the amount of a good that can be imported?
What is a quota?
400
Foreign currencies used to facilitate international trade.
What is foreign exchange?
400
Tariff high enough to generate revenue for the government without actually prohibiting imports.
What is a revenue tariff?
500
Honduras has a comparative advantage in growing bananas, so the grow bananas.
What is specialization?
500
An agreement to liberalize free trade by reducing tariffs among three major trading partners: Canada, Mexico, and the United States.
What is the North American Free Trade Agreement (NAFTA)?
500
Selling products for less than it cost to make them.
What is dumping?
500
The forces of supply and demand establish the value of one country's currency in terms of another country's currency.
What is flexible or floating exchange rates?
500
Favors fewer or even no trade restrictions.
What is a free trader?
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