Ch 17 - International Trade Flashcards
When an economy or individual can produce more of any good per unit of labor than another country or individual, that country or person is said to have an…
Absolute advantage
The rate at which a country can trade domestic products for imported products is called the…
Terms of trade
When countries specialize in producing the goods in which they have a comparative advantage and then export those goods so they can import the goods in which they do not have comparative advantage is called…
A one-way (or industry) trade
International trade in which countries both import and export the same or similar goods is called…
Two-way (or intraindustry) trade
A ________ policy is one in which a country restricts the importation of goods and services produced in foreign countries.
Protectionist
A tax on imported goods and services
Tariff
A domestic firm, faced with competition by a foreign competitor, files charges with its govt that the foreign firm is ________, or charging an “unfair” price.
Dumping
A direct restriction on the total quantity of a good or service that may be imported during a specified period.
A quota
A form of trade barrier by which foreign firms agree to limit the quantity of goods exported to a particular country
Voluntary export restrictions
A new domestic industry with potential economies of scale is called an…
Infant industry
Any such policy aimed at promoting the development of key industries that may increase a country’s well-being through trade with the rest of the world is known as a….
Strategic trade policy
