Vocabulary 1
"A tax on Imports"
Tariff
The money or benefits lost by not selecting a particular option during the decision-making process.
Opportunity Cost
The Ratio at which two currencies are traded
Exchange Rate
A nationalist economic policy that is designed to maximize the exports and minimize the imports for an economy. Popular between 1500 and 1800
Mercantilism
Signed in 1947, this agreement sought to promote the liberalization of foreign trade.
General Agreement on Tariffs and Trade (GATT)
A limit on the quantity of imports
Quota
When a country uses fewer resources to produce a product than another country does.
Absolute Advantage.
The ratio at which a country can trade domestic products for imported products.
Terms of Trade
What is the only state to leave the European Union Free Trade Agreement?
United Kingdom
When two or more nations join to form a free-trade zone.
Economic Integration
When a company imports more than it exports
Trade Deficit
When a good can be produced at a lower cost in terms of other goods
Comparative Advantage.
The quantity and quality of labor, land, and natural resources of a country.
Factor Endowments
The highest tariff in U.S. History, at 60% set off an international trade war and caused the decline in trade which is considered a cause of the Great Depression.
Smoot-Hawley Tariff.
What Trade agreement was signed in 1994 between Canada, Mexico and the United States?
NAFTA - North American Free Trade Agreement
When a company exports more than it imports
Trade Surplus
This theory states that a country has a comparative advantage in the production of a product if that country is relatively well endowed with inputs used intensively in the production of that product.
Heckscher-Ohlin Theorem
A firm or industry that sells products on the world market at prices below the cost of production
Dumping
How many Free Trade Agreements does Canada have?
15 FTA's with 51 countries
What is the full name of the "New NAFTA"
United States, Mexico, Canada Agreement (USMCA)
Shielding a sector of the economy from foreign competition.
Protectionism
Economies that will only trade domestically. It may also refer to a country with a very strong preference for domestic trade
Closed Economies
A young industry that may need temporary protection from competition from the established industries of other countries to develop an acquired comparative advantage
Infant Industry
How many Free Trade Agreements does Columbia have?
17
What is one of the largest Free Trade Agreements in the world, including 15 countries such as China, Australia, Japan, South Korea, Cambodia and Vietnam.
Regional Comprehensive Economic Partnership (RCEP)