Help
Options
Didn't know it?
click below
click below
Knew it?
click below
click below
Don't Know
Remaining cards (0)
Know
retry
shuffle
restart
0:00
Embed Code - If you would like this activity on your web page, copy the script below and paste it into your web page.
Normal Size Small Size show me how
Normal Size Small Size show me how
Global Trade
CIE economics unit:Globalization and Trade
| Term | Definition |
|---|---|
| Embargo | When one country refuses to trade with another country; an official ban on trade or other commercial activity with a particular country |
| Quota | A limit on the amount of goods that may be brought imported a country; usually to encourage production within that country |
| Tarrif | A tax placed on an imported good |
| Export | Goods going out of a country |
| Specialization | When a country produces a particular good or service |
| Import | goods coming into a country |
| Import quota | A limit on the amount of a good that can be imported. |
| Protectionism | The use of trade barriers to protect domestic industries from foreign competition. |
| Exchange rate | The value of a nation's currency in relation to your another nation's currency. |
| Trade surplus | the result of a nation exporting more than it imports. |
| Explain three non-tariff ways governments might limit imports | Sometimes governments will require a license to sell goods in that country, use health and safety regulations and requirements, use tariffs, or set import quotas |
| Free trade | Trade without any restrictions (no trade barriers) |
| Protectionism | the theory or practice of shielding a country's domestic industries from foreign competition by taxing imports or limiting international trade |
| Absolute advantage | when a country that can produce more quantity or quality of a certain product than another country with the same resources (more efficient use of resources than another country) |
| Comparative advantage | when a country can produce a produce at a lower opportunity cost than another country (more efficient use of resources within the same country) |
| World Trade Organization | an intergovernmental organization that organizes the rules of international trade; coordinates tariffs and other trade policies of more than 150 member nations and mediates trade disputes between member nations |
| Trade surplus | when a country exports more than it imports |
| Trade deficit | when a country imports more than it exports |
| Why is it NOT always good to have a trade surplus or bad to have a trade deficit? | if a country can buy things for cheaper than it makes them it can use its resources to make (and sell) more profitable things |
| Revenue tariff | a tax on imported goods designed to raise money for the government; can be thought of as a charge for access to a country's citizens/customers |
| Protective tariff | a tax on imported goods designed to "level the playing field" and ensure domestic manufacturers have a chance of competing |
| Strong currency / Strong Dollar | When a nation's currency is worth more of another nation's currency than it used to be worth (or than it is worth on average) |
| Weak currency / Weak Dollar | When a nation's currency is worth less of another nation's currency than it used to be worth (or than it is worth on average) |
| Fixed exchange rate | When a nation's currency is always a certain percentage of another nation's currency (e.g. Saudi Arabia's currency is "pegged" to the US dollar). The currency's become stronger or weaker in parrallel |
| Floating exchange rate | When a nation's currency is valued according to global supply and demand for that currency |
Created by:
sfoston
Popular Economics sets