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9 Cards in this Set
- Front
- Back
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International trade |
Consists of the exchange of goods and services by different countries |
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Absolute advantage |
Is the ability to produce more of a good than another producer with the same quantity of inputs |
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Law of comparative advantage |
States that producers should produce the goods they are most efficient at producing and purchase from others the goods they are less efficient at producing |
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Exports |
goods and services that are sold abroad |
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Imports |
Goods and services that are purchased abroad |
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Balance of trade |
Is the difference between the value of the goods a country exports and the value of the goods it imports |
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Tariff |
Is a tax on imports |
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Quotas |
Are restrictions on the quantity of a good that can enter a country |
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Embargo |
Is a total ban on the import of a good from a particular country |
