Ch 3 Flashcards
Why Nations trade?
Absolute advantage. Cooperative advantage. Outsourcing.
What is absolute advantage ?
What’s comparative advantage?
What’s outsourcing?
In what consists ‘ international business?
What’s balance of trade?
What’s trade deficit? Negative/positive
What’s balance of payments ?
Is trade deficit bad?
Not necessarily,
What’s infrastructure?
How does economic development may happen?
What are the 4 international trade barriers?
Economic ethical legal political, social and cultural I technological barriers?
What are exchange rates?
Laws and regulations :
Import tariffs:
Fixed tariff:
Specific amount of money levied on each unit of product brought into country.
Advalorem tariff:
Protective tariffs:
Exchange controls:
Quota:
Limits the number of units of a particular product that can be imported into a country.