One side
Exports minus imports.
What is net exports?
Consumers and businesses in a growing economy will tend to buy more of these.
What are imports?
The price of a currency expressed in terms of another currency.
What is an exchange rate?
An international institution aimed at promoting free trade by persuading countries to abolish import tariffs and other barriers.
What is the World Trade Organization?
When governments of two or more countries work together to liberalize trade.
What is economic integration or a trading bloc?
When one country can produce more of a good or service than another country can.
What is absolute advantage?
Expectations concerning the future value of the currency will often draw more of these into the market.
What are speculators?
A system where market forces alone determine the currency's value.
What is a floating (or flexible) exchange rate system?
These restrict trade by quantity.
What are quotas?
This occurs when a trade agreement results in a decrease in tariffs that leads to an increase in imports that displaces less-efficient domestic (and possibly foreign) producers.?
What is trade creation?
They lose when tariffs are applied to an import?
What is the consumer (final or intermediate) and foreign producer?
Official increase in the price of a currency in a fixed exchange rate system?
What is revaluation?
Examples of these are health and safety standards, environmental standards, and quality standards.
What are non-tariff barriers (NTBs)?
This occurs when a trade agreement reduces tariffs that replaces imports from an efficient non-member to a less-efficient member.
What is trade diversion?
This results in the future repayment of capital plus interest , will reduce government spending and can reduce government supplies of foreign reserve assets?
What is international borrowing or debt?
This occurs when foreigners increase their purchases of your (domestic) goods and services.
What is an increase in demand for a currency?
These are ussed by importing countries to keep imports from being sold at a price less than production costs.
What are countervailing duties?
This is the process of reducing or eliminating trade barriers.
What is trade liberalization?
When countries open up to free trade and concentrate their resources in one or few industries.
What is specialization?
The y-axis label in a diagram showing the supply and demand for the Mexican peso against the US dollar.
What is USD per MXN?
This occurs when other countries act against (unfair) import barriers.
What is retaliation?
A form of economic integration when members agree to adopt a single currency.
What is monetary union?