CHAPTER 2 Flashcards
international trade?
the exchange of capital, goods and services across international borders
balance of payments?
the difference between payments and reciepts
balance of payments includes?
1- current accounts, all merchandise exports and imports
2- capital account, direct investement, short term capital movments to countries
3- reserve account, exports and imports of gold exchange and increase and decrease in liabilities to foerign central banks
protectionism?
designed to protect a country’s market from foreign investments
arguments concering protectionism on trade?
1- protection of infant industry
2- protection of home market
3- maintaniece of standers of living
4- conservation of natural resources
5- industrilization of a low wage nation
6- need to keep money at hometra
trade barriers?
1- tariffs, tax imposed by a goverment on goods entering it’s borders
2- non tariffs
3- quoates
4- voluntry export (VER)
5- boycutts
global competitive index ?
1- enabling environment (institutions and infrastructure)
2- market (size and labour market)
3- human capital (health and skills)
4- innovation ecosystem ( innovation capabilities)
greater arab free trade area (GAFTA)?
trade agreement of 18 countries in westren asia and northen africe except Sudan and Yemen as they are less devolped countries.
world trade organizations (WTO)?
institution not an agreement sets many rules between 132 members
G7?
1- Italy
2- Germany
3- france
4- japan
5- uk
6- us
7- canada
factors affecting exchange rates stability?
1- inflation
2- intrest rates
3- public debts
4- economic helth
5- trade balance
IMF?
these organizations play important roles in international trade by helping maintain stability in financial markets by assisting countries that are seeking to economic devolepment
