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22 Cards in this Set
- Front
- Back
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trade deficit
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when a country imports more than exports
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trade surplus
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export more than import
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balance of trade
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difference between the value of a country's exports and imports
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Absolute advantage (smith)
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compare one nation with another
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comparative advantage (Richardo)
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opportunity cost of producers
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protectionim
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trade restriction through barriers usch as tariffs and quotas
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NTB non-tariff trade barrier
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trade restrictions that dont involve tax on imports
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VER Volontary export restraint
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restrict foods and service exported to a given country by a targeted country
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NAFTA north american free trade agreement
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us mex can
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GATT general agreement on tariffs and trade
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objective: reduce barriers to international trade
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WTO world trade organization
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supervise and liberlize international trade
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4 benefits of trade
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emplyment and income
competion lower prices for consumers |
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trade barriers cause:
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fewer choives of products
higher prices |
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3 steps to retirment
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Social security
Employer benefits Personal savings |
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defined benefit plan
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tradtional pension; benefits bepend on # of yrs employed w/company, age at retirment, pre-retirement salary (Vesting required)
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vesting
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must work certain # of yrs to be eligible for pension
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Defined contribution plan (increasing)
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both employer and employee contribute; employee makes regular contri, emloyee invests the money rather that the employer more risk for employee
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When was SS founded
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1935; compulsory contributions, old age insurance, pay as you go financing
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COLA cost of living adjustments
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annual adjust in wages to offset a change in purchasing power, measured by consumer price index
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eligiblity for social security
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40 quarters or 10 yrs.
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4 problems with SS
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1. Lack of solvency( social securith workers-to- recipients has declined)
2. Lack of adequecy(min. benefits below poverty line, 20+%rely on SS a main source of income) 3.Lack of econ efficiency(not all resources are fully working) 4. Lack of equity (differential treatment of individuals) |
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Solving SS problems
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increase taxes, increas SS revenue, reduce COLA's
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