Civics Flashcards
Export
To sell goods to other nations
Import
To bring goods in from another country
Comparative advantage
The ability to produce something at a lower opportunity cost than another country can.
Protectionism
Doing things to make goods at home cheaper than imported goods.
Tariff
A tax on imports,
Quota
Limits the amount of an item allowed to enter a country.
Subsidy
A payment or benefit the government gives to help a domestic producer
Free trade
Policy in which countries join with key trading partners to lower trade barriers with the intention of increasing trade .
Free trade zones
When one country tries try to increase trade, they join with trading partners and set up areas of free trade.
Balance of trade
The difference between the value of a nations imports and the value of its exports.
Exchange rate
The value of one currency when exchanged, or traded, for another.
Privatization
The change from having sate owned businesses and farms to ones owned by private citizens.
Developed countries
Countries that have a high standard of living and a lot of industry.
Developing countries
Countries that are not very productive and have low GDP per capita
Mixed economy
An economy that combines part of a market economy with parts of a command economy.
