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15 Cards in this Set
- Front
- Back
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Absolute Advantage
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only gives part of the picture
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Absolute Quota
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limits the amount of a good allowed into the country to some specific quantity
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ad valorem tariff
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tax calculated on the basis of the good's value
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Comparative Advantage
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Trade at the macroeconomic level promotes the efficient allocation of resources and enhances the productivity of the nation through specialization
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compound tariff
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tax based on a combination of value and unit
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Contract Manufacturing
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Hiring a firm in a foreign country to produce goods for your firm
*Take advantage of low labor costs *Avoid environmental, regulatory laws |
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Domestic Trade
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Very few restrictions in western nations except illegal drugs, prostitution, and sale of body organs
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Exchange Rate
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price of one currency denominated in terms of a second currency
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Export Promotion Growth
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developing economy relying on exports as source of growth
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Export tariff
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tax on goods being exported out of the country
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Exporting
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Selling products made locally in foreign country
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Fair Trades
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Government should promote the sale of domestically made goods in foreign markets
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Fixed exchange rate system
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government promises to hold value of its currency to some major currency
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Flexible-exchange rate system
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value of a currency fluctuates according to demand and supply for that currency in the foreign exchange market
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Foreign Direct Investment (FDI)
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the investor expects/wants to actively manage the organization and owns more than 10% of the voting stock
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