Ch.2 Flashcards
World Trade
The flow of goods and services among different countries.
Counter trade
A type of trade in which goods are paid for with other items instead of cash.
General Agreement on Tariffs and Trade (GATT)
The International treaty to reduce import tax levels and trade restrictions.
World Trade Organizations (WTO)
Replaced GATT; sets rules for its member nations and mediates disputes between nations.
Protectionism
A policy adopted by a government to give domestic companies an advantage.
Import quotas
Limitations set by the government on the amount of a product allowed to enter or leave a country.
Embargo
A quota completely prohibiting specified goods from entering or leaving a country.
Tariffs
Taxes on imported goods
economic communities
Groups of countries that band together to promote trade.
GDP
The total dollar value of goods and services produced by a nation within its borders in a year.
Foreign exchange rate (forex rate)
The price of a nation’s currency in terms of another currency.
Economic Infrastructure
The quality of a country’s distribution, financial and communication systems.
Level of economic development
The broader economic picture of a country.
Standards of Living
An indicator of the Average quality and quantity of goods and services in country
Least Developed Country (LDC)[Mainly Agriculture]
A country with the lowest stage of economic development.
