Reading...
Play button
Play button
Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
16 Cards in this Set
- Front
- Back
|
Absolute Advantage |
The ability of an individual, a firm, or a country to produce more of a good or service than competitors, using the same amount of resources. |
|
|
Autarky |
A situation in which a country does not trade with other countries.
|
|
|
Comparative Advantage |
The ability of an individual, a firm, or a country to produce a good or service at a lower opportunity cost than competitors.
|
|
|
Dumping |
Selling a product for a price below its cost of production.
|
|
|
Exports |
Goods and Services produced domestically but sold in other countries.
|
|
|
External Economies |
Reductions in a firm's costs that result from an increase in the size of an industry.
|
|
|
Free Trade |
Trade between countries that is without government restrictions.
|
|
|
Globalization |
The process of countries becoming more open to foreign trade and investment.
|
|
|
Imports |
Goods and Services bought domestically but produced in other countries.
|
|
|
Opportunity Cost |
The highest-valued alternative that must be given up to engage in an activity.
|
|
|
Protectionism |
The use of trade barriers to shield domestic firms from foreign countries.
|
|
|
Quota |
A numerical limit a government imposes on the quantity of a good that can be imported into the country.
|
|
|
Tariff |
A Tax imposed by a government on imports.
|
|
|
Terms of Trade |
The ratio at which a country can trade its exports for imports from other countries.
|
|
|
Voluntary Export Restraint (VER) |
An agreement negotiated between two countries that places a numerical limit on the quantity.
|
|
|
World Trade Organization (WTO) |
An international organization that oversees international trade agreements. |
