Econ Chapter 17 Vocab

Front 1

Exports

Back 1

a commodity, article, or service sold abroad.

Front 2

Imports

Back 2

a commodity, article, or service brought in from abroad for sale.

Front 3

Absolute advantage

Back 3

the ability of an individual or group to carry out a particular economic activity more efficiently than another individual or group.

Front 4

Comparative advantage

Back 4

countries specialise in producing goods where they have a lower opportunity cost

Front 5

Tariff

Back 5

a tax or duty to be paid on a particular class of imports or exports.

Front 6

Quota

Back 6

a limited quantity of a particular product that under official controls can be produced, exported, or imported.

Front 7

Protectionists

Back 7

the theory, practice, or system of fostering or developing domestic industries by protecting them from foreign competition through duties or quotas imposed on importations.

Front 8

Free traders

Back 8

one that practices or advocates free trade

Front 9

Balance of payments

Back 9

the difference in total value between payments into and out of a country over a period.

Front 10

World Trade Organization

Back 10

the only global international organization dealing with the rules of trade between nations

Front 11

North American Free Trade Agreement (NAFTA)

Back 11

an agreementamong the United States, Canada and Mexico designed to remove tariff barriers between the three countries.

Front 12

Foreign exchange rate

Back 12

Rate at which one currency may be converted into another. also called rate of exchange or exchange rate or currency exchange rate.

Front 13

Fixed exchange rate

Back 13

a country'sexchange rate regime under which the government or central bank ties the officialexchange rate to another country's currency (or the price of gold).

Front 14

Flexible exchange rate

Back 14

a country'sexchange rate regime where its currency is set by the foreign-exchange market through supply and demand for that particular currency relative to other currencies.

Front 15

Trade deficit

Back 15

the amount by which the cost of a country's imports exceeds the value of its exports.

Front 16

Trade surplus

Back 16

the amount by which the value of a country's exports exceeds the cost of its imports.

Front 17

Trade-weighted value of the dollar

Back 17

a measurement of the foreign exchange valueof the U.S. dollar compared against certain foreign currencies.

Front 18

Embargo

Back 18

an official ban on trade or other commercial activity with a particular country.

Front 19

European Union (EU)

Back 19

A political union, often called the EU, to which the member states of the EEC are evolving. Based on the Maastrict Treaty, it envisions the eventual establishment of common economic, foreign, security, and justice policies.

Front 20

Association of Southeast Asian Nations (ASEAN)

Back 20

a political and economic organisation of tenSoutheast Asian countries. It was formed on 8 August 1967 by Indonesia, Malaysia, the Philippines, Singapore, and Thailand.