Quiz #8 Vocab Flashcards Preview

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Flashcards in Quiz #8 Vocab Deck (18):
0

One country can produce more than another country

Absolute advantage

1

One country can produce goods at a lower opportunity cost than another country

Comparative advantage

2

Limiting international trade in order to protect domestic firms and jobs

Protectionism

3

Tax on imports
Imports go down and price rises

Tariff

4

Legal limit on the number of goods imported
Imports go down and price rises

Quota

5

A government payment to its firms to make them more competitive with foreign films

Subsidy

6

International trade that is carried on with little if any trade restrictions

Free trade

7

Balance of trade

Exports minus imports

8

Exports>imports
Positive balance of trade

Trade surplus

9

Imports>exports
Negative balance of trade

Trade deficit

10

Balanced trade

Exports = imports

11

Rate at which one currency can be exchanged for another
Ex: $1= 13 pesos

Exchange rate

12

Imports go up and exports go down
Domestic goods are expensive to foreigners
Foreign goods are cheap to domestic consumers

Strong currency (currency has appreciated)

13

Imports go down and exports go up
Domestic goods are cheap to foreigners
Foreign goods are expensive to domestic consumers

Weak currency

14

NAFTA

North American Free Trade Agreement
Free trade between Canada, US, and Mexico

15

WTO

World Trade Organization
Ministers free trade agreements between nations

16

ASEAN

Association of Southeastern Asian Nations

17

EU

European Union