Humanities Vocab (Trade) Flashcards
What is a trading bloc?
A trading bloc is when countries have a trade agreement that usually decreases export/import prices.
What is a subsidy?
A subsidy is when the government of a country gives money to a business in the country, to bring more money to the country.
What is a trade deficit?
A trade deficit means that the country is importing more goods and services than it is exporting.
What is a trade surplus?
A trade surplus means that the country is importing less goods and services than it is exporting.
State the trading bloc between the North American countries.
NAFTA (North American Free Trade Agreement)
State where the ASEAN trading bloc takes place.
South East Asia
What is a trade barrier?
A trade barrier is any regulation or policy that restricts international trade, including tariffs, quotas, licenses etc.
What is a tariff?
A tariff is a tax imposed by the government of a country or by an international union on imports or exports of goods.
What is a quota?
A quota is a government-imposed trade restriction that limits the number or monetary value of goods that a country can import or export during a particular period.
What can lead to countries creating a trade barrier?
War, eliminating competition & low quality products from said country.
What can lead to countries creating a trading bloc?
Need to trade easier, shared interests & countries in the same area wanting profit.
What countries are in NAFTA?
USA, Canada, Mexico
Name at least 3 countries that are in ASEAN.
Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam.
What does LEDC stand for and what does it mean?
LEDC (Less Economically Developed Country) refers to a country which is not very economically developed.
What does MEDC stand for and what does it mean?
MEDC (More Economically Developed Country) refers to a country which is economically developed.
