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18 Cards in this Set
- Front
- Back
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tariff
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a tax on an imported good
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retaliation
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a situation in which one country responds to the trade restrictions of another country by iposing trade restrictions of its own
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primary commondities
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unprocessed raw material and agricultural products
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inelastic demand
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demand in which buyers are relatively unresponsive to changes in price
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declining terms of trade
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a situation in which the price of a country's exports declines relative to the price of its imports
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embargo
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restrictions on trade with another country for political reasons
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North American Free Trade Agreement (NAFTA)
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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
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General Agreement on Tariffs and Trade (GATT)
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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.
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World Trade Organization (WTO)
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the organization that replaced FATT in 1995 and continues to pursue GATT's agenda to reduce barriers to trade among member countries.
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absolute advantage
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a situation whereby a country can produce a good at a lower resource cost than another country
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compartitive advantage
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a situation whereby a country can produce a good at a lower opportunity cost than another country
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consumption possibilities curve
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a curve that shows alternative combinations of the maximum amounts of two products that can be consumed within a country during a particular period
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exports
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the value of goods and services sold to foreigners
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imports
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the value of goods and services purchased from foreigners
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trade balance
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the value of a nation's exports minus its imports
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trade deficit
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the amount by which a nation's trade balance is in deficit (exports exceed imports)
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trade surplus
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the amount by which a nation's trade balance is in surplus (exports exceed imports)
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quota
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restriction on the quantity of an imported good
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