CH: 19 International Trade

Question 1

Comparative adavantage

Answer 1

when a entity can produce at a lower opportunity cost than a competitor can p602

Question 2

dumping

Answer 2

occurs when a foreign supplier sells a good below the price it charges in its home country p615

Question 3

import quotas

Answer 3

limits on the quantity of products that can be imported into a country p612

Question 4

infant industry argument

Answer 4

states that domestic industries need trade protection until they are established and able to complete internationally p615

Question 5

net export

Answer 5

the total export of final goods and services minus total imports of final goods and services. p598

Question 6

protectionism

Answer 6

a blanket term for government actions and policies that restrict or restrain international trade, often with the intent of protecting local business and jobs from foreign competition. p608

Question 7

tariffs

Answer 7

are taxes levied on imported goods and services p608

Question 8

trade balance

Answer 8

the difference between its total exports and total imports p598

Question 9

trade deficit

Answer 9

when import exceed export, indicating a positive trade balance p598

Question 10

trade surplus

Answer 10

when exports exceed imports, indicating a positive trade balance. p598