Flashcards in Chapter 8 Vocab Deck (18):
Goods bought from other countries for domestic use.
Goods sold to other countries.
Ability of one country, using the same quantity of resources as another country, to produce a particular product at a lower absolute cost.
Concept that a nation should produce and export a limited assortment of goods for which it is particularly suited in order to remain profitable.
Ability of a country to produce a product at a lower opportunity cost than another country.
The price of one nations currency in terms of another nations currency
Markets dealing in buying and selling foreign currency for businesses that want to import goods from other countries.
Foreign exchange markets
System under which a national government sets the value of its currency in relation to a single standard.
Fixed rate of exchange
Agency whose member governments once were obliged to keep their foreign exchange rates more or less fixed; today it offers monetary advice and provides loans to developing nations.
International Monetary Fund (IMF)
Lowering a currency's value in relation to other currencies by government order
Arrangement in which the forces of supply and demand are allowed to set the price of various currencies.
Flexible exchange rates
Difference between the value of a nations exports and its imports.
Balance of trade
Tax placed in an imported product/
Tax on imports used to raise the cost of imported goods and thereby protect domestic producers.
Restriction imposed on the value of or on the number of units of a particular good that can be brought into the country.
Complete restriction on the import or export of a particular good.
People who argue for trade restrictions to protect domestic industries.