Chapter 10 Flashcards
what are fluctuations in trade?
Fluctuations in trade
Trade rises when world output rises
Falls when output falls or sometimes by trade restrictions
what is outsourcing?
Customer service calls for U.S. companies are now more frequently answered in India
What are trade deficits?
Trade deficit = exports < imports
what is a trade surplus?
Trade surplus = exports > imports
how is the US financing its trade deficits?
The U.S. is currently financing its trade deficit by selling off assets
What are tariffs?
Tariffs are taxes governments place on internationally traded goods (generally imports)
What are quota’s?
Quotas are quantity limits placed on imports
What is a voluntary restraint agreement?
Voluntary restraint agreements are when countries voluntarily restrict their exports
What is an embargo?
An embargo is a total restriction on the import or export of a good
what is a regulatory trade restriction?
Regulatory trade restrictions are government-imposed procedural rules that limit imports
what are nationalistic appeals?
Nationalistic appeals, such as “Buy American” can help to restrict international trade
How many members does the world trade organization have?
The World Trade Organization (WTO) has over 150 members
What are Free Trade Associations?
Free trade associations are groups of countries that allow free trade among its members and put up common barriers against all other countries’ goods
What is a most favored nation status?
Countries strengthen trading relationships with most-favored nation status – those countries will be charged as low a tariff on exports as any other country
