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Macro Chapter 19

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Term
Definition
Net exports   total exports of final goods and services minus total imports of final goods and services  
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Trade balance   the difference between a nation's total exports and total imports  
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Trade deficit   condition occurring when imports exceed exports, indicating a negative trade balance  
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Trade surplus   condition occurring when exports exceed imports, indicating a positive trade balance  
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Comparative advantage   the situation where an individual, business, or country can produce at a lower opportunity cost than a competitor can  
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Protectionism   a blanket term for government actions and policies that restrict or restrain international trade, often with the intent of protecting local businesses and jobs from foreign competition  
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Tariffs   taxes levied on imported goods and services  
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Import quotas   limits on the quantity of products that can be imported into a country  
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Infant industry argument   the idea that domestic industries need trade protection until they are established and able to compete internationally  
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Dumping   behavior occurring when a foreign supplier sells a good below the price it charges in its home country  
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