A nation can produce more of a given product using a given amount of resources.
What is absolute advantage?
100
A trade restriction with a means of preventing a foreign product or service from freely entering a nation's territory.
What is a trade barrier?
100
Founded in 1995 to ensure compliance with GATT, to negotiate new trade agreements, and to resolve trade disputes.
What is the World Trade Organization (WTO)?
100
The use of trade barriers to protect industries from foreign competition.
What is protectionism?
100
The value of foreign nation's currency in relation to your own currency.
What is exchange rate?
200
A nation is better off when it produces goods and srvices for which it has a comparative advantage.
What is the law of comparative advantage?
200
A limit on the amount of a good that can be imported.
What is an import quota?
200
In 1957, six western European nations set up the Common Market to coordinate economic and trade policies.
What is the European Union (EU)?
200
A new industry.
What is an infant industry?
200
The exchange rate between the dollar and the yen increases from 100 yen per dollar to 120 yen per dollar.
What is appreciation of the dollar?
What is depreciation of the yen?
300
The ability to produce a product more efficiently given all the other products that can be produced.
What is comparative advantage?
300
A self-imposed limitation on the number of products that are shipped to a particular country.
What is voluntary export resraint (VER)?
300
Regions where a group of countries agrees to reduce or eliminate trade barriers.
What are free-trade zones?
300
Shelters workers in industries that would be hurt by foreign competition.
What is protecting jobs?
300
A decrease in the value of a currency.
What is depreciation?
400
The U.S. produces 37 cars a day and Japan produces 15 cars a day.
What is an example of absolute advantage?
400
A tax on certain items purchased abroad.
What is customs duty?
400
The North American Free Trade Agreement.
What is NAFTA?
400
Protecting jobs, protecting infant industries, safeguarding national security, and keep the monet at home.
What is examples of protectionism?
400
The banks and other financial institutions that facilitate the buying and selling of foreign currencies.
What is the foreign exchange market?
500
China has a comparative advantage in textiles, so they produce textiles.
What is specialization?
500
The U.S. imposed tariffs on European clothing a specific foods, including ceratin cheeses, meats, and mustards, in reponse to a European ban on hormone- treated beef from the U.S.
What is the Beef War of 1999?
500
Tariffs on all farm products and on some 10,000 other goods are to be eliminated over 15 years.
What is a provision of NAFTA?
500
Certain industries claim trade trade protection when in fact their products are not essential to national security at all.
What is the free trade arument for safeguarding national security?
500
A currency system in which governments try to keep the values of their currencies constant against one another.