International Economics Flashcards
The concept of comparative advantage is based on
Comparative advantage in international business is based on opportunity costs
The us is considered an
Open economy
An import quota will provide the greatest benefit to
Domestic suppliers. Because it limits the quantity of a commodity
Trade protectionism seeks to protect domestic producers by restricting the importation of
Foreign goods and services
The following account that is not used for payments statement is
Non-current account
When a competitors currency becomes weaker than US is has an
Advantage in the us market
Free fluctuating exchange rates correct a lack of equilibrium in the
Balance of payments
If the foreign currency conversion exchange rate increases the exports are
Less expensive in the us
The exchange risk that services from changes in currency exchange rates is
Economic exchange risk
International economic activity is not due to
The protection do done stoic manufacturing capabilities
Freely fluctuating exchange rates
Automatically correct lack of equilibrium in balance payments
