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11 Cards in this Set
- Front
- Back
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Chapter 3
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International Trade
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Exports
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Produced domestically and sold to foreign consumers
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Imports
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Produced by Foreign producers and consumed by domestic consumers
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Formula for Net Exports
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Net Exports= Exports-Imports
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Trade Deficit
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Imports> Exports
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Trade Surplus
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Exports>Imports
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Trade Barriers
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Restricts international trade
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Tariffs
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A tax on an imported good
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Quota
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A limit on the amount of goods imported
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Absolute advantage
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The ability of one party to produce a greater amount of an output than another party.
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Comparative advantage
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The ability of one party to produce an output at a lower opportunity cost than another party.
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