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
A political trade barrier means we don’t trade with a country if we don’t _________ of it.
Approve
What problem is something you do that impacts someone else that wasn’t a part of the decision? (Externality)
A third party payment
A third party payment is also known as a what?
Externality
Because of _____________ the health and safety trade barrier justification make its OK.
Externalities
Cost from externalities lower the what?
Standard of living
Every trade barrier protecting industry is inefficient besides what two industries?
Infant industry
Defense industry
When bring home currency from another country you use a market called what?
International currency market
A weaker currency will ___________ exports but ____________ imports.
Increase
Decrease
A stronger currency will ____________ exports but ___________ imports.
Decrease
Increase
