The flashcards below were created by user
Anonymous
on FreezingBlue Flashcards.
-
absolute advantage
the ability to produce a specific product more efficently that any other nation
-
comparitive advantage
the ability to produce a specific product more efficently than any other product
-
balance of trade
the totl value of its exports minus the total value of its imports over some period of time
-
trade deficit
a negative balance of trade
-
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
-
import duty
a tax levied on a particular foreign product entering a country
-
dumping
exportation of a large quantities of a product at a price lower than that of the same product in the home market
-
nontariff barriers
a nontax measure imposed by a government to favor domestic over foreign suppliers
-
import quota
a limit on the amount of a particular good that may be imported into a country during a given period of time
-
embargo
a complete halt to trading with a particular nation or in a particular product
-
foreign-exchange control
a restriction on the amount of a particular foreign currency that can be purchased or sold
-
currency devaluation
the reduction of the value of a nations currency relative to the currencies of other countries
-
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
-
reasons against trade restrictions
higher prices for consumers, restriction of consumers choices, misallocation of international resources, loss of jobs
-
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
-
world trade organization(WTO)
established in the uruguay rounds; powerful succesor to GATT that incorporates trade in goods, services, and ideas
-
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
-
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
-
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
-
Bill of lading
documents issued by a transport carrier to an exporter toprove that merchandise has been shipped
|
|