The ability to produce a good at a lower opportunity cost than a trading partner is called ___.
Comparative advantage
100
The next-best alternative given up when a decision is made is the ___.
Opportunity cost
100
This international organization administers trade agreements and provides a forum for trade disputes.
World Trade Organization (WTO)
100
Goods and services sold to buyers in another country are ___.
Exports
100
In world-systems theory, wealthier, highly industrialized countries that concentrate high-value activities are the ___.
Core countries
200
Country A gives up 1 computer to make 5 tons of coffee; Country B gives up 1 computer to make 2 tons of coffee. The comparative advantage in coffee belongs to ___.
Country A
200
A town builds a stadium on land that could have been community gardens. The gardens are the town's ___.
Opportunity cost
200
A tax imposed on imported goods is a ___.
Tariff
200
Phones made abroad and bought by consumers at home are ___.
Imports
200
A country chiefly exports unprocessed cocoa and imports finished chocolate. It most closely occupies the ___.
Periphery
300
Making one shipment of textiles costs Nation X 3 tons of wheat and Nation Y 1 ton of wheat. The country that should specialize in textiles is ___.
Nation Y
300
A factory shifts resources from making 100 phones to making 20 buses. The opportunity cost of the 20 buses is ___.
100 phones
300
A nation permits only 20,000 foreign cars to enter in a year. This numerical import limit is a ___.
Quota
300
If one U.S. dollar buys more Japanese yen than before, Japanese goods become ___ for U.S. buyers.
Cheaper
300
A country has growing manufacturing and some regional influence but remains economically dependent on core markets. It is often classified as the ___.
Semi-periphery
400
A nation can produce more of a good than another nation using the same resources. That production edge is an ___ advantage.
Absolute
400
A government chooses copper mining instead of a tourist area. If copper prices fall, the forgone alternative that makes the choice more costly is potential ___.
Tourism revenue
400
Selling a product abroad below its home-market price or below cost to gain market share is called ___.
Dumping
400
A country exports $80 billion in goods and imports $100 billion. Its trade balance is a ___.
$20 billion trade deficit
400
This theory argues that poorer countries can remain constrained by unequal trade relationships and reliance on wealthier countries.
Dependency theory
500
Alpha can make 8 laptops or 32 bicycles; Beta can make 6 laptops or 12 bicycles. To use comparative advantage, specialize Alpha in ___ and Beta in ___.
Bicycles; laptops
500
A government spends $1 billion expanding an export port rather than funding rural clinics. The opportunity cost is the ___ forgone.
Health benefits from rural clinics
500
Without a valid exception, a WTO member gives a lower tariff to one member but not identical imports from others. It may violate the ___ principle.
Most-favored-nation (MFN) nondiscrimination
500
Other factors held constant, a country's currency falls against the euro. For European buyers its exports become ___, while imports become ___ for local consumers.
Cheaper; more expensive
500
A country earns most export revenue from oil, so a global oil-price collapse sharply cuts funds for imports and public services. This illustrates ___.