Term
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Definition
| the goods and services that a nations sells to other nations |
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Term
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Definition
| the goods and services that a nation buys from other nations |
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Term
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Definition
| a country's ability to produce more of a given product than another country can produce |
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Term
| production possibilities frontier |
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Definition
| diagram showing the maximum combo. of goods and/or services an economy can produce when all resources are fully employed |
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Term
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Definition
| a country's ability to produce a given product relatively more efficiently than another country by doing it at a lower opportunity cost |
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Term
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Definition
| cost of the next best alternative use of money, time, or resources when making a choice |
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Term
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Definition
| tax placed on an imported product |
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Term
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Definition
| limit on the amount of a good that is allowed into a country |
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Term
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Definition
| tax on an imported product designed to protect less efficient domestic producers |
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Term
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Definition
| tax placed on imported goods to raise revenue |
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Term
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Definition
| persons who want to protect domestic producers against foreign competition with tariffs, quotas, &other trade barriers |
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Term
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Definition
| persons who favor fewer or even no trade restrictions |
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Term
| infant industries argument |
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Definition
| argument that new and emerging industries should be protected from foreign competiton until they are strong enough to compete |
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Term
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Definition
| difference between money paid to, and recieved from, other nations in trade |
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Term
| World Trade Organization (WTO) |
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Definition
| international agency that administers trade agreements, settles trade disputes between gov'ts, organizes trade negotiations, &provides technical assistance &training for developing countries |
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Term
| North American Free Trade Agreement (NAFTA) |
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Definition
| agreemnent signed in 1993 to reduce tariffs &increase trade among the U.S., Canada, &Mexico |
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Term
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Definition
| various currencies used to conduct international trade |
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Term
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Definition
| price of one country's currency in terms of another country's currency |
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Term
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Definition
| system under which the values of currencies are fixed in relation to one another |
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Term
| flexible exchange rates (&floating exchange rates) |
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Definition
| system that relies on supply and demand to determine the value of one currency in terms of another |
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Term
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Definition
| balance of payments outcome when spending on imports exceeds revenues recieved from exports |
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Term
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Definition
| balance of payments outcome when revenues recieved from exports exceed spending on imports |
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Term
| trade-weighted value of the dollar |
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Definition
| index showing the strength of the U.S. dollar against a group of major foreign currencies |
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