International Trade Class Notes Flashcards
An increase in international trade, will lead to an increase in what?
Standard of living
When every nation has an unequal endowment of productive resources so some nations can produce some products better and cheaper than others is known as a what?
Comparative advantage
Some nations can produce some resources at a lower opportunity cost than others leading to different ____________ _____________ for other nations.
Comparative advantages
Self sufficiency instead of international trade leads to what two things?
Lower standard of living
Poverty
What is an import tax?
Tariff
When a certain amount of product can be imported into the country it’s considered what?
Import quota
Stopping all imports of a certain product is considered what?
An embargo
What is a tax that taxes goods before they leave the country?
Export tax
Where are export taxes seen?
Developing countries (barter economies)
Rules or regulations you must follow to export a good is considered what trade barrier?
Administrative barrier
One justification for trade barriers is the health and ___________ rule.
Safety
A second justification for trade barriers is a _________ justification to avoid problems of importing weapons.
Defense
The importing of weapons makes a country too ____________ therefore a trade barrier must be in place.
Vulnerable
A third justification for a trade barrier is to protect the ________ in the US.
Jobs
A forth justification for trade barriers is to protect the __________ from cheaper imports.
Industries
