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13 Cards in this Set
- Front
- Back
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Labor intesive good
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A product requiring a large amount of labor to be produced
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Land intesive good
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A product requiring a large amount of Land to be produced.
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Capital intensive good
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A product requiring a large amount of Capital to be produced.
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Comparative advantage
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A lower relative opportunity cost than that of another producer or country.
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trading possiblities line
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A line that shows the different combinaions of two products that an economy is able to obain when it specializes in the producion of one prodcut and trades it to obtain the other product
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gains from trade
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The extra output that trading partners obtain thought speicalization of production and exchange of goods and services.
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domestic price and world price
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DP=The price of a good within a country where it was produced.WP=determined by world demand and supply.
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export supply curve
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An upright sloping curve that shows the amount of a product that domestic firms will export at each world price.
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import demand curve
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A downsloping curve showing the amont of a product that an economy willl import at each wolrd price below the domestic price.
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tariffs
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a tax imposed by a nation on an imported good.
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Volentary export restriction
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Volentary limitaions by countries or firms of their exports to a paticular foreign nation to aviod enactment of formal trade barriers by that nation.
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Stragic trade policy
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the use of trade barriers to reduce the risk inhrent in product development by domestic firms, particulary that involving advanced technology.
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dumping
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The sale of a product in a foreign country at prices either below cost or below the price commonly charged at home.
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