The rates at which nations trade with other nations. Can either be favorable or unfavorable.
What is balance of trade?
100
- protection
- national security
- protect citizens health
- retaliation against other countries
What is one reason for trade barriers?
100
Things that limit trade between countries.
What is a trade barrier?
100
- free trade improves economic efficiency
What is one argument that is for free trade?
100
This is the value of all money coming into the country thanks to exports , minus all of the money going out of the country thanks to imports.
What is balance of payments?
200
They do this to get things they don't have with the things they do have.
Why do countries trade?
200
Special guidelines for goods coming into a country.
What are standards for trade?
200
Special taxes placed on imported goods.
What is a tariff?
200
- protection of jobs
- protection of "infant" industries
What is one argument against free trade?
200
North American Free Trade Agreement
- it allows for free trade between the U.S., Mexico, and Canada
What is NAFTA and what does it do?
300
A country can produce a product using less resources than another country.
What is Absolute Advantage?
300
When you export more than you import.
What is a favorable balance of trade?
300
Limitation on the amounts a particular good that can be imported into a country.
What is a quota?
300
Encourages economies to both produce and import.
What is one positive thing about free trade?
300
European Union
- block of 27 European countries
What is EU?
400
When a country can produce a good at a lower opportunity cost than another nation.
What is Comparative Advantage?
400
When you import more than you export.
What is an unfavorable balance of trade?
400
When a country, or several countries refuse to trade with a country.
What is an Embargo?
400
Trade between countries without any trade barriers.
What is free trade?
400
Association of South East Asian Nations
-10 SE Asian nations that trade among each other
What is ASEAN?
500
Happens because a country has a comparative advantage over another.
What is one reason for trade?
500
When good don't meet U.S. standards and have to be taken back.
What are recalls?
500
Payment from the government to businesses.
What is a subsidy?
500
Groups of countries that trade together.
What are trading blocks?
500
The price of one nation's currency in terms of another nation's currency.
- benefits: imports increase, exports decline
- Hurts: exports increase and prices increase, imports decline
What are exchange rates and what benefits/hurts from it?