International Finance Vocabulary PPT

Question 1

Absolute
Advantage

Answer 1

WHEN A PRODUCER CAN PRODUCE A
GOOD OR SERVICE IN GREATER
QUANTITY FOR THE SAME COST, OR
THE SAME QUANTITY AT A LOWER
COST, THAN OTHER PRODUCERS

Question 2

Comparative
Advantage

Answer 2

AN ECONOMY’S ABILITY TO
PRODUCE A PARTICULAR
GOOD OR SERVICE AT A
LOWER OPPORTUNITY COST
THAN ITS TRADING PARTNERS

Question 3

Opportunity
Cost

Answer 3

THE COST OF FORGOING THE
NEXT BEST ALTERNATIVE
WHEN MAKING A DECISION

Question 4

Exchange

Answer 4

THE ACT OF TRADING ONE
THING FOR ANOTHER

Question 5

Trade

Answer 5

THE ACTION OF BUYING
AND SELLING GOODS AND
SERVICES

Question 6

Specialization

Answer 6

FOCUSING ON A
PARTICULAR PRODUCT OR
SERVICE TO IMPROVE
EFFICIENCY

Question 7

Trade Barrier

Answer 7

ANY REGULATION OR
POLICY THAT RESTRICTS
INTERNATIONAL TRADE

Question 8

Tarrif

Answer 8

A TAX ON IMPORTED GOODS

Question 9

Embargo

Answer 9

A government’s prohibition on
trade with a particular country

Question 10

Standard (on
imported goods)

Answer 10

A REQUIREMENT THAT
IMPORTED GOODS MUST MEET
CERTAIN SPECIFICATIONS OR
STANDARDS

Question 11

Subsidy

Answer 11

FINANCIAL AID OR SUPPORT
EXTENDED TO AN
ECONOMIC SECTOR

Question 12

Quota

Answer 12

a proportional part or share

Question 13

Trading
Bloc

Answer 13

A GROUP OF COUNTRIES
THAT ENGAGE IN
PREFERENTIAL TRADE
ARRANGEMENTS

Question 14

European
Union (EU)

Answer 14

A POLITICAL AND
ECONOMIC UNION OF 27
EUROPEAN COUNTRIES

Question 15

ASEAN
(Association of
Southeast Asian
Nations)

Answer 15

A REGIONAL
INTERGOVERNMENTAL
ORGANIZATION COMPRISING
TEN SOUTHEAST ASIAN
COUNTRIES

Question 16

CUSMA
(formerly
NAFTA)

Answer 16

THE CANADA-UNITED
STATES-MEXICO AGREEMENT,
A TRADE AGREEMENT
BETWEEN CANADA, MEXICO,
AND THE UNITED STATES