|
Home > Preview
The flashcards below were created by user
gabo
on FreezingBlue Flashcards.
-
Specialization without trade.
- Conclusion:
- When contries specialize, total world output increases, and, therefore, the potential for greater total world consuption also increases.
-
Specialization with trade.
Global trade allows a country to consume a combination of goods that exceed its production possibilities curve.
-
Comparative Advantage
The ability of a country to produce a good at a lower opportuniy cost than another country
-
Absolute advantage
The ability of a country to produce a good using fewer resources than another country.
-
Free trade
The flow of goods between countries without restrictions or special taxes.
-
Protectionism
The goverment's use of embargoes, tariffs, quotas, and other restrictions to protect domestic procedures from foreign competitions
-
Embargo
A law that bars trade with another country
-
Tariff
A tax on an import
-
World Trade Organization (WTO)
An international organization of member countries that oversees international trade agreements and rules on trade disputes.
-
Quota
A limit on the quantity of agood that may be imported in a giving time period.
-
Arguments for Protection
- Infant Industry Argument
- National Security Argument
- Employment Argument
- Cheap Foreign Labor Argument
-
Balance of payments
A bookeeping record of all the international transactions between a country and another countries during agiven period.
-
Balance of Trade
The values of a nation's imports substracted from its exports. Balance of trade can be given in term of goods, services, or goods and services.
-
Exchange rate
The number of units of one nation's currency that equals one unti of another nation's currency.
-
Depreciation of currency
`A fall in the price of one currency relative to another
-
Appreciation of currency
A rise in the price of one currency relative to another.
|
|
Get the free mobile app
Take the Quiz
Learn more
Learn more