Trade Advantages
Trade Barriers
Trading Blocks
Protectionism v. Freetrade
International Currencies
100
The ability to produce more of a given product using a given amount of resources.
What is absolute advantage?
100
A means of preventing a foreign product or service from freely entering a nation's territory.
What is a trade barrier?
100
A world wide organization whose goal is freer global trade and lower tariffs.
What is World Trade Organization?
100
The use of trade barriers to protect a nation's industires from foreign competition.
What is protectionism?
100
A single currency that replaces individual currencies amoung members of the EU.
What is the euro?
200
The U.S. produces 50 tractors a day while China produces 25 tractors a day.
What is an example of absolute advantage?
200
Import quotas, voluntary export restraints, and tariffs.
What are the 3 common forms of trade barriers?
200
A region where a group of countries agrees to reduce or eliminate trade barriers.
What is a free-trade zone?
200
A new industry.
What is an infant industry?
200
The value of a foreign nation's currency in terms of the home national's currency.
What is exchange rate?
300
THe ability to produce a product most effeciently given all the other products that could be produced.
What is comparative advantage?
300
A limit on the amount of a good that can be imported.
What is an import quota?
300
Agreement that will eliminate all tariffs and other trade barriers between Canada, Mexico, and the United States.
What is NAFTA?
300
Includes protecting jobs, protecting infant industries, and safeguarding national security.
What are examples of protectionism?
300
An increase in the value of a currency.
What is appreciation?
400
A country has a comparative advantage in producing a good so they focus on producing that good.
What is specialization?
400
A self-imposed limitation on the number of products shipped to a particular country.
What is voluntary export restraint?
400
A regional trade organization made up of European Nations.
What is the EU?
400
limiting imports will keep American money in the US instead of allowing in to go abroad.
what is keeping the money at home?
400
If the dollar exchange rate fell to 80 yen per dollar, you would get fewer yen for each dollar.
What is an example of depreciation?
500
The idea that a nation is better off when it produces goods and services for which it has a comparative advantage.
What is the law of comparative advantage?
500
The Smoot-Hawley Tariff of 1930 increased the U.S.'s average tariff on all products to 50%.
What is an example of a trade war?
500
A trade agreement including countries that lie along the Pacific Rim.
What is APEC?
500
A difference between money paid to, and recieved from, other nations in trade.
What is balance of payments?
500
The banks and other financial institutions that facilatate teh buying and sellinjg of foreign currencies.
What is the foreign exchange?
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