business 100 chapter 3 part 1

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  1. absolute advantage
    the ability to produce a specific product more efficently that any other nation
  2. comparitive advantage
    the ability to produce a specific product more efficently than any other product
  3. balance of trade
    the totl value of its exports minus the total value of its imports over some period of time
  4. trade deficit
    a negative balance of trade
  5. balance of payments
    the total flow of money into a country minus the total flow of money out of that country over some period of time
  6. import duty
    a tax levied on a particular foreign product entering a country
  7. dumping
    exportation of a large quantities of a product at a price lower than that of the same product in the home market
  8. nontariff barriers
    a nontax measure imposed by a government to favor domestic over foreign suppliers
  9. import quota
    a limit on the amount of a particular good that may be imported into a country during a given period of time
  10. embargo
    a complete halt to trading with a particular nation or in a particular product
  11. foreign-exchange control
    a restriction on the amount of a particular foreign currency that can be purchased or sold
  12. currency devaluation
    the reduction of the value of a nations currency relative to the currencies of other countries
  13. reasons for trade restrictions
    to equalize a nations balance of payments, to protect new or weak industries, national security, the health of citizens, and to also protect domestic jobs
  14. reasons against trade restrictions
    higher prices for consumers, restriction of consumers choices, misallocation of international resources, loss of jobs
  15. General agreement on tarrifs and trade (GATT)
    an international organization of 153 nations dedicated to reducing or eliminating terrifs and other barriers to world trade
  16. world trade organization(WTO)
    established in the uruguay rounds; powerful succesor to GATT that incorporates trade in goods, services, and ideas
  17. economic community
    an organization of nations formed to promote the free movement of resources and products among its members and to create common economic policies
  18. licensing
    a contractual agreement in which one firm permits another to produce and market its products and use its brand name in return for a royalty or other compensation
  19. letter of credit
    issued by a bank on request of an importer stating that the bank will pay an amount of money to a slated benificiary
  20. Bill of lading
    documents issued by a transport carrier to an exporter toprove that merchandise has been shipped
Card Set
business 100 chapter 3 part 1
business 100 chapter 3 part 1
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