Global Economics
This term is used to determine a nation's level of development and is calculated per person.
What is per capita GDP?
The value of a currency compared to another country’s currency.
What is the exchange rate?
A tax on imported goods.
What is a tariff?
This advantage occurs when a country can produce more goods with the same resources.
What is absolute advantage?
This term describes the growing global economic connection.
What is globalization?
High consumer spending, especially on technology, is a key trait of these nations.
What are developed nations?
When a country buys more than it sells.
What is a trade deficit?
A restriction on the amount of a good that can be imported.
What is an import quota?
When a country produces at the lowest opportunity cost.
What is comparative advantage?
Goods sent overseas for sale are called this.
What are exports?
The literacy rate helps measure this about a country.
What is a country's level of development?
The U.S. uses this kind of exchange rate system.
What is a flexible exchange-rate system?
This happens if one country imposes tariffs and the other retaliates.
What is a trade war or mutual trade restrictions?
Japan gained this advantage in the auto industry in the 1970s.
What is comparative advantage (due to fuel-efficient cars during shortages)?
Foreigners starting businesses in another country is called this.
What is foreign direct investment (FDI)?
Two health-related statistics that help measure development.
What are life expectancy and infant mortality rate?
When a nation's currency loses value.
What is depreciation?
What is a trade war or mutual trade restrictions?
What is the World Trade Organization (WTO)?
This law says countries benefit by producing what they do best.
What is the Law of Comparative Advantage?
The U.S. has its largest trade deficit with this country.
What is China?
These countries are described as moving toward development.
What are Newly Industrialized Countries (NICs)?
When the U.S. dollar appreciates, this happens to U.S. exports to Europe.
What is they become more expensive and may decrease?
The main goal of international trade agreements.
What is to reduce restrictions and increase trade?
This is why countries trade instead of producing everything themselves.
What is the uneven distribution of resources?
This type of policy protects domestic industries from foreign competition.
What is protectionism?