Chapter 3 Quiz

import quota

A limit on the quantity of a certain good that can be imported.

devaluation

A lowering of the value of a nation's currency relative to other currencies.

nationalism

A sense of national consciousness that boosts the culture and interests of one country over those of all other countries.

tariff

A tax imposed on imported goods.

Embargo

A total ban on imports or exports of a product.

outsourcing

Sending work functions to another country, resulting in domestic workers losing their jobs.

Free trade

The policy of permitting the people and businesses of a country to buy and sell where they please without restrictions.

Exporting

The practice of selling domestically produced goods to buyers in another country.

Exports

Goods and services produced in one country and sold to other countries.

Imports

Goods and services that are bought from other countries.

infrastructure

The basic institutions and public facilities upon which an economy's development depends.

balance of trade

The difference between the value of a country's exports and the value of its imports during a specific time.