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24 Cards in this Set
- Front
- Back
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exchange rate
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the equilibrium price on curent market
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currency market
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the market at which people buy and seel a nation's money
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who demands dollars
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the demand of the country's goods and services
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who supplies dollars
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the supply comes from people wanting to buy goods and services made in other countries
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what is exchange rate?
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it is the rate at which people give up one currency to get another.
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appreciation
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gets stronger
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depresiation
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becomes weaker
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what are the ballance of payments
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total ballance of payments=total receipt from other countries
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current acount
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relates to the payments for goods and services, as well as transfers
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capital accounts
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reflects a country's net sale of physical and finacial assets
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Floating exchange rate
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a system that allows the equilibrium price on a current market to move up and down the freely due to market force
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Fixed system
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a system that sets the price at a predetermined level
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what moves the demand and supply curve in a floating exchange rate
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Price, income, and expectations
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Protectionism
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opponents of free trade often turn to the government to help protect domestic producers from imports
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tariffs
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a tax on imported goods
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quotas
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a direct limit on the amount of a good that may be imported
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Dumping
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when foreign firms sell their products at unrealistic low prices
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National intrest
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some industries claim their product is vital to the national intrest
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infant industies
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some industies claim they need protection to provide time to establish themselves, reorganize, and grow
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impact of free trade on Developing countries
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developing countries are payed less than U.S. workers, and lower trade barriers lower trade increase the opportunities for workers.
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impact of free trade on the enviroment
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trade puts pressure on both poor and rich countries to lower their trade standards.
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international trade organization
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the World Trade Organization(WTO), and Regional trade agreements
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World Trade Organzation (WTO)
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An international organization that promotes free trade amoung mamber countries
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Regional Trade Agreement
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NAFTA is a free trade area comprised of the U.S., Canada, and Mexico
The European Union is and economic union of Eropean countries. |
