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;
24 Cards in this Set
- Front
- Back
balance of trade
|
deficit/surplus
|
|
free trade
|
trade between countries without barriers or restrictions of any kind (no tariffs)
|
|
protectionism
|
put up barriers to trade, protect our industry
|
|
absolute advantage
|
when one country is better at making both goods
|
|
comparative advantage
|
when one country has an absolute advantage in everything, but would rather make one good than another, so trade occurs to save time
|
|
infant industry arguement
|
in favor of protectionism for young companies. give new companies government money so that they can compete in the market
|
|
subsidies
|
a government payment to support a business or market so they can compete
|
|
tariffs
|
taxes on imports designed to keep other countries out
|
|
revenue tariff
|
tax on imports designed to raise money for the government
|
|
protective tariff
|
tax on imports designed to keep other countries products out
|
|
non-tariff barrier
|
health standards and safety requirements
-protect us, keep products out |
|
quotas
|
a limit on the number of products a country may sell in the US
|
|
embargo
|
ban on trade with a specific country
|
|
boycott
|
not buying a certain good
|
|
foreign exchange
|
trading with other countries
|
|
strong dollar
|
more imports, GNP down, move towards trade deficit
|
|
weak dollar
|
less imports, higher GNP, more towards trade deficit
|
|
GATT
|
-General Agreement on Trade and Tariff
-nations that wanted to encourage foreign trade by reducing barriers -became WTO |
|
WTO
|
-world trade organization
-encourage globalization, countries can sure each other |
|
NAFTA
|
North American Free Trade Association
-US, Canada, and Mexico |
|
EU
|
-European Union
-free trade zone in Europe, economically more efficient |
|
globalization
|
the whole world is one market place, towards free trade, getting rid of barriers
|
|
problems with free trade
|
increase unemployment, lower enviornmental standards, lower wages, health risks, patents not protected, race to the bottom (sweatshops), cultural homogenization, union problems
|
|
problems with protectionism
|
political tension, decrease efficiency, decrease variety, higher prices
|