Exploring Economics Unit 8 Quiz

Import tariff

A taxed placed on goods that businesses import into a country

Arbitrage

A term used for taking advantage of price difference

Fair trade movement

An effort to help families and small companies in less-developed countries compete in the world economy

Sanction

An order forbidding citizens from trading with another country

Specialization

Concentrating on one kind of work

Export

Goods and services that producers create within a country and then sell and send to people, companies, or governments in other countrues

Import

Goods and services that producers in other countries make and then people, companies, and governments purchase and bring into a different country

Subsidies

Government payments to industries that have to compete in a world market where prices are lower than they are in the producing country

Transaction costs

Import tariffs, fuel expenses, business taxes, costs of complying with regulations

Trade deficit

More imports than exports

Trade surplus

More imports than exports

NTR

NOrmal Trade Relations

NAFTA

North American Free Trade Agreement

Trade

Purchase between countries

Balance of trade

The difference between a country's imports and exports

Currency exchange rate

The price of one country's currency expressed in terms of another country's currency

Nominal exchange rate

The rate at which you can exchange one currency for another

Absolute Advantage

The situation in which one person or country can produce goods with a smaller input of resources than another

Comparative advantage

The situation in which one producer has a smaller opportunity cost of producing a good or service compared to another producer

Protectionism

To protect domestic industries from what the government in that country sees as unfair competition from foreign industries