Vocab
Vocab
Trading blocks
Free trade
Exchange Rates
100
What are trade barriers?
A means of preventing a foreign product or service from freely entering a nations territory
100
What is comparative advantage?
What is the ability to produce a product most effieciently given all the other products could be produced
100
What are some examples of trading blocks?
NAFTA, EU, ASEAN
100
What is free trade?
Trade between countries without any trade barriers
100
What are exchange rates?
The price of a nations currency in terms of another nations currency
200
What is trade?
When countries have different comparative advantages over another so they trade
200
What is absolute advantage?
The ability to produce more of a given amount of resources
200
What does NAFTA do?
It allows free trade between United States, Mexico, and Canada
200
Are there any limitations or restrictions to free trade?
No
200
When are exchange rates good?
When the dollar is strong or appreciates
300
What is a tariff?
A tax on imported goods
300
What are standards?
The minimum level of quality that must be met for a good or service to be imported into a country
300
What is EU?
Its a block of 27 European countries
300
What does free trade encourage economies to do?
Both produce and import
300
When does the U.S.'s trade deficit increase?
When exchange rate is good
400
What is a quota?
What is limits on the amounts of goods and services that can be imported into a country
400
What is subsidy?
A government payment that supports a buisness or market
400
What its ASEAN?
10 Asian nations tgat trade together
400
What is an argument for free trade?
People believe that it improves economic efficiency
400
When are exchange rates bad?
When the dollar is weak or depreciates
500
What is embargo?
A ban on trade with a particular country
500
What are trading blocks?
A group or countries that trade together
500
What do the countries involved in trading blocks have in common?
They are all close together
500
What is an argument against free trade?
Protection of National Security
500
Is it more or less expensicpve to travel abroad when exchange rates are bad?
More expensive
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