A country can produce a product using less resources than another country
What is absolute advantage?
100
A tax on imported goods
What is a tariff?
100
The actions of buying and selling goods and services
What is trade?
100
Groups of countries that trade together- often these utilize over another
What is a trading blocks?
200
When a country can produce a good at a lower opportunity cost than another nation
What is comparative advantage?
200
Limitation on the amounts a particular good that can be imported into a country
What is an quota?
200
A minimum level of quality that must be met for a good or services to be imported in a country
What is a standard?
200
Protection of National Security, protection of "infant" industries, & protection of jobs
What are the arguments against free trade?
300
You export more than you import
What is favorable balance of trade?
300
When a country, or several countries refuse to trade with a country
What is an embargo?
300
A government payments that supports a business or market
What is subsidy?
300
Signed in 1992, allows for free trade between the United States, Mexico, and Canada
What is North American Free Trade Agreement (NAFTA)?
300
The price of one nation's currency in terms of another nation's currency?
What is exchange rate?
400
Import more than export
What is unfavorable balance of trade?
400
Protectionism, national security, protect citizens health, & retaliation against other countries
What are the reasons for trade
400
Trade between countries without any trade barriers; there are no limitations or restrictions
What is free trade?
400
Have single currency; trade between each other- very successful
What is European Union (EU)
400
When the dollar is strong, or appreciates(imports increases and are cheaper for consumers to buy)
Who benefits from changing exchange rates?
500
Country has a comparative advantage over another; countries usually focus on producing what they do best; trade what they are able to produce effectively for things they cannot
What are the reasons for trade?
500
When you pay for imports, that takes money out of your economy; when you get paid for exports, that adds money to your economy
What is balance of payments?
500
Many people believe free trade improves economic efficiency; people can purchase their wants and needs at the lowest possible price etc.
What are the arguments for free trade?
500
Established in 1992, eliminated many tariffs between the countries involved
What is Association of South East Asian Nations (ASEAN)?
500
When the dollar is weak, or depreciates (US exports increase and the prices of exports go up)