Terms
The initials in NAFTA stand for
What is North American Free Trade Agreement?
opposite of trade deficit
What is a trade surplus?
Tariffs, quotas, and subsidies are examples of
What are trade barriers?
The paper money and coins- sometimes called "cash"- that make up the money supply of a nation.
What is currency?
The trading block MOST LIKELY to include the Phillippines, Indonesia, and Singapore is
ASEAN
Currency used in the European Union
What is the Euro?
Established in 1967 in Thailand with more than 500 million members, one of the largest regional markets in the world is
What is ASEAN?
a limitation on the number of units or the amount of a particular good that can be imported into another country.
What is a quota?
This is the amount that money can buy.
What is purchasing power?
These three countries make up NAFTA
What are the U.S. Canada, and Mexico?
Putting policies in place that are designed to protect domestic industries from too much foreign competition.
What is protectionism?
Because Nebraska specializes in the production of corn and Maine specializes in the production of lobsters, the two states could engage in trade that benefits both parties. This law of economics is known as
What is comparative advantage?
special taxes place on products imported from another country.
What is a tariff?
Although it lost most of its value during and after World War II, the currency of Japan is now one of the strongest in the world. Japan's currency is called the
What is the yen?
The next best choice
What is opportunity cost?
determined by supply and demand. if the demand for dollars increases or decreases, it will affect the exchange rate value.
What is a floating exchange rate?
when a country, the United States for example, spends more on products from other countries than other countries spend on products from the United States
What is a Trade Deficit?
when a country, or several countries, impose economic sanctions against a nation by refusing to trade with it.
The price of one nation's currency in terms of another nation's currency is called
What is the exchange rate?
Number of countries making up the EU
What is 28?
established prices for a foreign currency that is tied to the stable currency of a developed country. These currencies are often called hard currencies.
What is a fixed exchange rate?
Italy can produce wine more efficiently than Canada.
What is Absolute Advantage?
a payment from the government to businesses. They redistribute income from the general taxpaying public to non-competitive firms, thereby helping the firms to compete with wealthier foreign producers.
What are subsidies?
This is a type of money whose value comes from the item form which it is made, often precious metals such as silver or gold.
What is commodity?
According to monetarists, to prevent recessions, the Federal Reserve should
What is increase the money supply?