Whole Class
Most countries do this process when it comes to trade
They specialize / focus on their comparative advantage
First World Country
Countries who experience higher growth means they typically have higher what?
Standards of Living
This concept means that a producer can produce more output overall and or requires less resources to product more is called?
Absolute Advantage
This term defines world economies being more interconnected through trade, technology, and communications
This is taxes paid on imports
A Tariff
T of F: overall GDP will be negative if Net Exports is negative
False.
The price of one currency relative to another currency is called
The exchange rate
When country's shield domestic industries from foreign competition, this is a process known as
Protectionism
When a country imports more than exports, this is known as a what?
Trade deficit
The increase of value of a country's currency with respect to another is called
Appreciation
Ben can clean a room in 20 minutes while his brother Sam can clean the same room in 30 minutes, who has the absolute advantage?
Ben
Foreign travelers, investors, and or new residence
Having a comparative advantage means
a country can produce a good or service / same one at a lower opportunity cost than another country
Who typically supplies US Dollars in the foreign exchange market?
Americans
What is the ideal situation when looking at products and opportunity cost that would benefit countries in trade?
The two countries produce two different goods at different opportunity costs
What happens to net exports when the US dollar appreciates?
Net exports decrease.
These are areas where countries will allow foreign direct investment to take place to build things such as factories and conduct trade
Economic Zones
Foreign Aid
Former Soviet Union / communist countries that are stuck in between their old economic systems and an industrialized state but is still experiencing low levels of growth are defined as
Second World Countries
According to the video we watched on the Demographic Transition Model, a country with high poverty and lower standards of living is defined as
More Developed Country
According to the Captain America Econ Movie we watched, what did Thomas Malthus's economic model not account for?
The rapid industrialization due to the industrial revolution period and beyond.
This group is made up of 189 countries that focus on economic stability, reducing poverty mainly in developing countries
The IMF
The Demographic Transition Model shows what three things?
Birth Rate, Death Rate, and Total Population over time
German businesses purchasing airplanes form American Producers would be an example of what kind of situation in regards to net exports?
A trade surplus for the U.S.