Chapter 10 Flashcards
Exports
The value of goods and services sold abroad
Imports
The value of goods and services purchased abroad
Does the United States have low exports compared to total output?
Yes
Where does the U.S. export majority of goods?
Canada and Mexico
Primary trading partners of U.S. ?
Canada, mexico, the European Union, the pacific rim countries
Q-1: how has the nature of U.S. imports from China changed in recent years?
The type of goods has changed from low tech to technologically advanced goods
Q-2: will a debtor nation necessarily be running a trade deficit?
No. Debt refers to accumulated past deficits. If a country had accumulated large deficits in the past it could run a surplus now but still be a debtor nation
3 policies used to restrict trade are
- Tariffs (taxes on internationally traded goods)
- Quotas (quantity limits placed on imports)
- Regulatory trade restrictions (government imposed procedural rules that limit imports)
Tariffs
Tax that governments place on internationally traded goods
Another name for tariffs?
Custom duties
What is the most used type of trade restriction?
Tariffs
GATT a regular international conference to reduce trade barriers
General agreement on tariffs and trade
(WTO) world trade organization
An organization who’s functions generally the same as GATT (promote free and fair trade among countries)
Quota
Quantity limit placed on imports
Tariffs (like all taxes on suppliers) do what to the supply curve?
Shift it up by the amount of the tax
