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18 Cards in this Set

  • Front
  • Back
a tax on an imported good
a situation in which one country responds to the trade restrictions of another country by iposing trade restrictions of its own
primary commondities
unprocessed raw material and agricultural products
inelastic demand
demand in which buyers are relatively unresponsive to changes in price
declining terms of trade
a situation in which the price of a country's exports declines relative to the price of its imports
restrictions on trade with another country for political reasons
North American Free Trade Agreement (NAFTA)
an agreement between the United States, Canada, and Mexico allowing more equal access to one another's markets. The agreement went into effect on January 1, 1994
General Agreement on Tariffs and Trade (GATT)
an international trade agreement, first negotiated in 1947, tat has included efforts to reduce tariff barriers among member countries of the world. It is now replaced by the World Trade Organization.
World Trade Organization (WTO)
the organization that replaced FATT in 1995 and continues to pursue GATT's agenda to reduce barriers to trade among member countries.
absolute advantage
a situation whereby a country can produce a good at a lower resource cost than another country
compartitive advantage
a situation whereby a country can produce a good at a lower opportunity cost than another country
consumption possibilities curve
a curve that shows alternative combinations of the maximum amounts of two products that can be consumed within a country during a particular period
the value of goods and services sold to foreigners
the value of goods and services purchased from foreigners
trade balance
the value of a nation's exports minus its imports
trade deficit
the amount by which a nation's trade balance is in deficit (exports exceed imports)
trade surplus
the amount by which a nation's trade balance is in surplus (exports exceed imports)
restriction on the quantity of an imported good