International Trade
Vocabulary
Absolute Advantage- Country's ability to produce more of a given product than another country
Comparative Advantage- Country's ability to produce a given product relatively more efficiently than another country
Balance of Payments- Difference between money paid to, and received from, other nations in trade
Trade Deficits- Balance of patents outcome when spending on import exceeds revenues received from exports
Flexible Exchange Rates- System that relies on supply and demand to determine the value of one currency in terms of another
Trade Surpluses- Situation occurring when the value of a nation's exports exceeds the value of its imports
Foreign Exchange- Foreign currencies used by countries to conduct international trade
Protectionists- Person who would protect domestic producers with tariffs, quotas, and other trade barriers
Infant Industries Argument- Argument that new and emerging industries should be protected form foreign competition until they are strong enough to compete
Protective Tariff- Tax on an imported product designed to protect less efficient domestic products
Revenue Tariff- Tax placed on imported goods to raise revenue
Tariff- Tax on imported goods
Quota- Limit on the amount of a good allowed in a country
Trade-Weighted Value of the Dollar- Index showing strength of the United States dollar against a market basket of other foreign countries
Absolute Advantage- Country's ability to produce more of a given product than another country
Comparative Advantage- Country's ability to produce a given product relatively more efficiently than another country
Balance of Payments- Difference between money paid to, and received from, other nations in trade
Trade Deficits- Balance of patents outcome when spending on import exceeds revenues received from exports
Flexible Exchange Rates- System that relies on supply and demand to determine the value of one currency in terms of another
Trade Surpluses- Situation occurring when the value of a nation's exports exceeds the value of its imports
Foreign Exchange- Foreign currencies used by countries to conduct international trade
Protectionists- Person who would protect domestic producers with tariffs, quotas, and other trade barriers
Infant Industries Argument- Argument that new and emerging industries should be protected form foreign competition until they are strong enough to compete
Protective Tariff- Tax on an imported product designed to protect less efficient domestic products
Revenue Tariff- Tax placed on imported goods to raise revenue
Tariff- Tax on imported goods
Quota- Limit on the amount of a good allowed in a country
Trade-Weighted Value of the Dollar- Index showing strength of the United States dollar against a market basket of other foreign countries