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15 Cards in this Set
- Front
- Back
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Exports
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Goods and Services that are sold abroad
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Imports
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Goods and services that are purchased abroad
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3 Protectionst measures?
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Tariffs, Quotas, and Embargoes
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Tariff
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tax on imports
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input
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Land, labor and capital
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What factors give the US an absolute advantage in wheat production?
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Soil, Climate, abundance of land, and farm equipment.
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law of comparative advantage
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produces should produce the goods they are most efficient at producing and purchase from others the goods they are less efficient in producing. Countries should specialize in what they do best.
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Trade surplus
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occurs when country exports more than it imports.
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Trade Deficit
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Occurs when a country imports more than it exports.
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Global Economy
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An economy in which companies compete actively with business
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Quota
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the share or proportional part of a total that is required from, or is due or belongs to
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Embargo
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any restriction imposed upon commerce by edict
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What is the largest free trade area in the world?
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NAFTA
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What countries are part of this?
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United States, Mexico, Canada.
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Why would countries become multinational corporations?
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Lower Labor costs, opportunity to sell products abroad.
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