The Benefits of Free Trade for Developing Countries Terms

Question 1

Imports

Answer 1

Goods or resources that are bought and brought (into) a country

Question 2

Exports

Answer 2

Goods or resources that are sold and sent out (exit) to other countries

Question 3

Tariff

Answer 3

A fee or tax on a good that is imported into a country

Question 4

Quota

Answer 4

A limit on an amount of a good that can be imported into a country

Question 5

Embargo

Answer 5

The refusal of one country to trade with another good without fear of the government stopping it

Question 6

Free Trade

Answer 6

An economic practice where countries can import and export

Question 7

Market Economy

Answer 7

Decisions are made by individuals, Based on trade and competition, also called free market or capitalism, often lacks regulation or quality

Question 8

Command Economy

Answer 8

Also called centrally planned economy, Government makes all decisions, What to produce, controls and redistribute and resources, prices and wages, No incentive to work hard

Question 9

Mixed Economy

Answer 9

Combination of free market, and limited government involvement, Government in place to assure quality and regulation

Question 10

Traditional Economy

Answer 10

Based on a culture and riturals, and is forced on the community as a whole