Trade Intro
When a country uses fewer resources to produce a product than another country does.
Absolute Advantage
The ratio at which 2 currencies are traded.
Exchange Rate
Economies which trade with party's outside of their borders.
Open Economies
A trading bloc composed of Austria, Belgium, Denmark, Finland, France, Germany, Greece, Northern Ireland & Republic of Ireland, Italy, Luxembourg, the Netherlands, Portugal, Spain, Sweden
European Union
When a country imports more than it exports
Trade deficit
A country focusing on the production of certain products which they trade for other goods, rather than producing all consumption goods on their own
Specialization
The quantity and quality of labor, land, and natural resources of a country.
Factor Endowment
A young industry that may need temporary protection from competition from the established industries of other countries to develop an acquired comparative advantage.
Infant Industry
The North American Free-Trade Agreement (NAFTA) is an agreement signed by the United States, Mexico, and Canada in which the three countries agreed to establish all of North America as a free-trade zone. What is the name of the new agreement signed in January of 2020?
United States, Mexico, Canada Agreement (USMCA)
The practice of shielding a sector of the economy from foreign competition.
Protectionism
When a certain good can be produced at a lower cost in terms of other goods.
Comparative Advantage
This occurs when two or more nations join to form a free-trade zone.
Economic Integration
Economies that will only trade domestically. It may also refer to a country with a very strong preference for domestic trade
Closed Economies
An international agreement singed by the United States and 22 other countries in 1947 to promote the liberalization of foreign trade.
General agreement on Tariffs and Trade (GATT)
When a country exports more than it imports
Trade Surplus
When a country exports more products to other nations than it imports, in order to amass treasure and expand their kingdom. A zero-sum game view of trade.
Mercantilism
This term refers to a firm or industry that sells products on the world market at prices below the cost of production.
Dumping
Government payments made to domestic firms to encourage exports
Export Subsidies
This historical Tariff set off an international trade war and caused the decline in trade that is often considered a cause of the worldwide depression of the 1930s
Smoot-Hawley Tariff
A tax on imports
Tariff
The ratio at which a country can trade domestic products for imported products
Terms of Trade
This theory states that a country has a comparative advantage in the production of a product if that country is relatively well endowed with inputs used intensively in the production of that product.
Heckscher-Ohlin Theory
BONUS! Double Points!
According to the International Trade Administration, as of 2023, how many Free Trade agreements does China have with various countries?
17
BONUS! Double Points!
According to the International Trade Association, as of 2023, how many Free Trade Agreements does Mexico have with various countries?
13
Define Quota
A limit on the quantity of imports.