Key Terms
The lowering of trade barriers between countries - a product of globalization
Free Trade
Whenever the U.S. dollar falls, exports tend to ____________ and imports tend to ______________.
What is go up; go down.
The price of one country’s currency in terms of another country’s currency.
What is the Foreign Exchange Rate.
The acronym used to assist in calculating comparative advantage in an input question is ___________________.
What is "IOU" (Input: Other Under).
These regulate tariffs and other trade restrictions between two or more countries.
What are Free Trade Agreements.
What is comparative advantage.
These are the three countries among which NAFTA established a trade agreement.
Bonus Points: What is the successor trade agreement to NAFTA?
What are the United States, Mexico and Canada.
USMCA (United States, Mexico, Canada Agreement)
This country manipulates its currency to impact its balance of trade with the United States.
What is China.
If country A can produce more basketballs than country B with the same amount of resources, country A has this.
What is an absolute advantage.
The value of capital investment per worker in the United States is about 30 times as great as in Nepal. This difference over time can lead to
What is large income gaps between nations.
Limit on the quantity of a product that can be imported.
What is a quota.
This is the acronym for the group that oversees global trade.
What is the WTO ("World Trade Organization").
Occurs when the value of imported products exceeds the value of exported products.
What is a trade deficit.
If country B can produce computers with a lower opportunity cost than country A, what does country B have?
A Comparative Advantage.
By working together and specializing, countries can produce and consume more of each good if they do this.
What is trade.
A tariff on an imported good would be an example of this.
What is a trade barrier.
Those who want to use government actions to preserve domestic businesses/industries from foreign competition are called.
What are protectionists.
The loss of potential gain from other alternatives when one alternative is chosen.
What is an opportunity cost.
They send that good from their country to another country.
What is exporting a good.
The trend toward increased cultural and economic connectedness throughout the world.
What is globalization.
This law and the resulting tariffs is credited as being one of the potential causes of the Great Depression.
What is the Smoot-Hawley Tariff Act.
The ______________ Revolution disproved earlier theories regarding the limitation of the Earth’s ability to feed a rapidly growing population.
What is the Green Revolution.
An economic concept that allows for a person, company, or country to focus on providing a single good or service, increasing their efficiency and profit.
What is specialization.
They bring a good into their country from another country
What is importing a good.