Why Nations Trade
This is the reason nations specialize in certain industries
What is uneven distribution of resources?
Goods sold to other countries.
What are exports?
This is the average income per person, used to measure development.
What is per capita GDP?
A reason a country might use protectionism.
What is to protect domestic industries or workers?
This allows Americans to buy grapes in winter from Argentina.
What is globalization?
Central America specializes in growing this crop.
What is coffee?
The country that imports the most goods in the world.
What is the United States?
The number of years a person is expected to live.
What is life expectancy?
A situation where countries respond to tariffs by placing their own.
What is a trade war?
The term for money sent home by migrants.
What are remittances?
This is the ability to produce more of a good than another nation
What is absolute advantage?
A restriction on the amount of a product that can be imported.
What is an import quota?
Farming only enough food for one's family.
What is subsistence agriculture?
The 1920s tariff that reduced world trade
What is the Smoot-Hawley Tariff?
The environmental challenge of removing forests.
What is deforestation?
This advantage is based on producing goods at a lower opportunity cost.
What is comparative advantage?
A tax on imported goods
What is a tariff?
Nations like Mexico and South Korea fall into this category of development.
What are Newly Industrialized Countries (NICs)?
A voluntary limitation on exports to another country.
What is a voluntary export restraint?
This happens when educated individuals leave an LDC for a developed nation.
What is brain drain?
The law stating nations benefit by specializing in goods with comparative advantage.
What is the Law of Comparative Advantage?
This occurs when a nation imports more than it exports.
What is a trade deficit?
The group of independent organizations that help fund foreign aid.
What are NGOs (Nongovernmental Organizations)?
An organization that resolves trade disputes between countries.
What is the World Trade Organization (WTO)?
A type of economic zone in China that attracts foreign investment.
What are Special Economic Zones?