Chapter 3: International Trade

Question 1

balance of trade

Answer 1

measure of the difference in value between a nation’s exports and imports, goods and services

Question 2

trade surplus

Answer 2

total amount of exports is higher than imports

Question 3

trade deficit

Answer 3

imports are higher than exports

Question 4

exchange rate

Answer 4

measurement of the values of one nation’s currency relative to the currency of other nations (dollars to euros)

Question 5

countertrade

Answer 5

international trade that involves the barter of products for products instead of money

Question 6

tariffs

Answer 6

taxes levied against imports

Question 7

quotas

Answer 7

limitations on the amount of specific products that may be imported from certain countries during a given period of time

Question 8

voluntary export restraints (VERs)

Answer 8

limitations on the amount of specific products that one nation will export to another nation

Question 9

embargo

Answer 9

complete both of international trade with a particular nation