Absolute/Comp
Barriers
Trade Blocks
Arguments
Exchange Rates
100
refers to an individual, firm, or country using the fewest inputs to produce the same amount of output or the individual, firm, or country producing the largest number of units of output given the same productive resources.
What is Absolute Advantage
100
limit the flow of goods, services, and productive resources between countries.
What is Trade Barriers
100
28 member countries. Of the 28, 19 use a common currency
What is the EU
100
supports the use of trade barriers when a new industry is in the early stages of development
What is infant industries
100
refers to the price of one country’s currency express in terms of another country’s currency
What is exchange rate
200
when one individual, firm, or country has the lowest opportunity cost for producing the good or service.  
What is Comparative Advantage
200
is a tax placed on goods imported into a country
What is a Tariff
200
is an agreement among the United States, Canada, and Mexico.
What is NAFTA
200
cites the importance of maintaining industries critical to the country’s national security even when the industry cannot efficiently compete at the international level
What is national security
200
refers to an increase in the value of a currency relative to another
What is appreciation
300
By producing those goods for which it has the lowest opportunity cost, countries can do what?
What is consume beyond the production possibilities
300
limits the quantity of a good imported into a country
What is a quota
300
a trade bloc of 10 Southeast Asian countries
What is ASEAN
300
seeks to protect workers of a country from becoming unemployed due to competition from products made by workers in developing countries who usually work for much lower wages and benefits
What is domestic employment
300
refers to a decrease in value of one currency relative to the other
What is depreciation
400
refers to the value of its exports minus the value of its imports for measurable during a specific time.
What is Balance of Trade
400
completely ban trade with a country usually due to political disputes
What is an embargo
400
What are two goals of trading blocks
1. reducing or eliminating trade barriers 2. increasing specialization and efficiency in production 3. allowing free movements of workers within the bloc 4. establishing a common currency 5. coordinating infrastructure projects to facilitate efficient trade among members
400
This happens because of low standards and poor working conditions.
What is protecting workers in developing countries
400
If the value of the Japanese Yen appreciates relative to the U.S. dollar, who is helped?
What is American Exporters
500
If the value of a country’s exports fall short of the value of its imports, the country has a
What is Trade Deficit
500
are requirements a good must meet before it can enter the country as an import
What is a standard
500
refers to the unrestricted flow of goods, services, and productive resources between countries.
What is free trade
500
supports restrictions on trade with countries that have lax environmental standards
What is protection of the environment
500
Given the Previous example of the Yen appreciating. Will there be and increase or decrease of Japanese Tourists at Disney World? Explain
What is increase. Japenese Tourists can purchase more american dollars, making their trip to disney cheaper.
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