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

China produces 50 tractors a day while the US 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 efficiently 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.

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 country will have a comparative advantage in the good that uses its relatively abundant factor intensively

What is the Heckscher-Ohlin Model?

400
A regional trade organization made up of European Nations.
What is the EU?
400

A K abundant country has a comparative advantage in a K intensive good

what leads to gains from trade according to the Hecksher-Ohlin Model

400

If the dollar exchange rate fell to 5 RMB per dollar, you would get fewer RMB 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

Self-sufficiency specifically : national economic self-sufficiency and independence, a policy of establishing a self-sufficient and independent national economy.

What is an example of Autarky?

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 facilitate the buying and selling of foreign currencies.

What is the foreign exchange Market?

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