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21 Cards in this Set
- Front
- Back
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Balance of payments |
a record of the value of all the transactions between the residents of onecountry and the residents of all other countries in the world in a given time period |
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Current account |
measure of the flow of funds from trade in goods and services, plus otherincome flows |
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Foreign Direct Investment |
the buying and selling of a minimum of 10% of a company's sharesby a foreign investor in the domestic economy or by a domestic investor in another nation's economy |
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Balance of trade |
in goods measure of the revenue received from the export of tangible goodsminus the expenditure on the imports of tangible goods over a given time period |
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Remittances |
when foreign workers send money back to families in their home country |
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Current transfers |
(net unilateral transfers) measurement of the net transfers of money,payments made between countries when no goods or services change hands |
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Net investment income |
(net factor income from abroad) measure of the net monetary movementfrom profit, interest and dividends moving into and out of a country over a given time period as a result of financial investment abroad |
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Appreciation |
if the blue of the currency in a floating exchange rate regime rises |
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Depreciation |
If the value of the currency in a floating exchange rate regime falls |
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Revaluation |
if the value of the currency, in a fixed exchange rate regime, is raised |
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Devaluation |
if the value of the currency, in a fixed exchange rate regime, is lowered |
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Trade diversion |
when the entry of a country into a customs union leads to the production of agood or service transferring from a low-cost producer to a high-cost producer |
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Trade creation |
when the entry of a country into a customs union leads to the production of agood or service transferring from a high-cost producer to a low-cost producer |
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common market |
a regional trade agreement whose member nations allow the free movement of inputs as well as outputs, and who share a common external tariff toward nonmembers |
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economic union |
he most complete form of economic integration, these unions are common markets that also harmonize many standards while having the same substantially similar fiscal and monetary policies. Economic unions may include a common currency. |
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foreign direct investment (FDI) |
the purchase of physical assets such as real estate or businesses by a foreign company or individual. It can be outward or inward. |
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free-trade area |
a preferential trade agreement in which countries permit the free movement of outputs across their borders as long as the outputs originate in one of the member countries |
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gross domestic product (GDP) |
the market value of all final goods and services produced in a year inside a nation |
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opportunity cost |
the value of the best forgone alternative to the activity actually chosen |
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According to the chart, what is the reason for the increase in trade between the US and Mexico? |
A)GATT B)NAFTA C)NATO D)WTO |
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1 |
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