Protectionism
What is protectionism?
What is... The practice of the government putting limits on foreign trades
What is a quota?
What is... A limit on the amount a singular product can be imported
What is an embargo
What is... a ban on importing or exporting a certain product.
What is a balance of trades?
What is... The difference of value between a country's imports and exports over a period of time.
What is another name for money?
What is... currency
Why do countries use protectionism?
What is...To protect businesses in their own county
What is a Multinational corporation?
What is... A company that does business in many countries and has facilities and offices all around the world.
What does to specialize mean?
What is... to focus on a particular activity, area, or product.
What is the global economy?
What is... Interconnected economies of the nations of the world.
What are the two types of trade listed in the chapter?
What is... Domestic trade and world trade
What is a tariff?
What is... A tax put on imports to increase their price
What is the difference between trade surplus and trade deficit?
What is... Trade surplus is when a country exports more than it imports and trade deficit is when a country imports more than it exports.
What is the importance of sustainability?
What is... If an economy can sustain their wealth and never forgo debt than they will always be prosperous as they can sustain a good way of living.
What is international trade?
What is...The exchange of goods and services between countries.
What is an exchange rate?
What is...The price that one currency can buy another currency.
What does balance of trade tell you?
What is... The difference of value of a country's imports and exports over a period of time.
What is one of the several meanings for trade?
What is...
- A specific area of business or industry
- a skilled occupation
- the people who work in a specific area of business or industry.
What does an exchange rate specify?
What is... The amount of one currency you can exchange for another.
What two words symbolize a country's ability to sell goods and services better than another country?
What is... Comparative Advantage
What is domestic trade?
What is... The production, purchase, and sales of goods and services within a country
Is it bad foreigners use the dollars they obtain to invest in the American economy instead of buying products?
What is... No, American currency is of little use to foreign countries.
What is the difference between imports and exports?
What is... Imports are goods or services a country buys from another country while exports are goods and services a country sells to another country.
How does specialization affect trade?
What is... Countries produce a surplus of the product in which they specialize and trade it for a different surplus good of another country.
How would a comparative advantage help a country compete in the global marketplace?
What is... If a country can sell the same items more efficiently and for more money than another country then they will receive more money faster making them more wealthier.
What is at the heart of most trade disputes?
What is... Whether there should be limits on trade or whether trade should be unrestricted.