Module 3 Vocabulary Flashcards
An order of a government prohibiting the departure of commercial ships from its ports
Embargo
One of the earliest economic theories, which stated that a country’s wealth was determined by the amount of gold and silver they had in their possession
Mercanilism
A commodity, good, or service sold abroad
Export
Bringing goods or services into the country from abroad for the purpose of selling
Import
When the value of a country’s exports is greater than the value of goods being imported
Trade surplus
The theory or practice of protecting a country’s domestic industries from foreign competition by taxing imports
Protectionism
Money paid by the government to help an organization or industry reduce its costs
Government subsidies
International trade left to its natural course without tariffs, quotas, or other restrictions
Free trade
The loss of potential gain from other alternatives when one alternative is chosen
Opportunity cost
A proportionate savings in costs gained by an increased level of production
Economies of scale
Focuses on multinational corportations
Global strategic rivalry theory
Proposes intra-industry trade will be standard
Country similarity theory
Based on a countries natural resources
Factor endowment theory
Taxes on goods that are imported into a country
Import tariffs
Taxes on goods leaving a country
Export tariffs
Tariffs that protect a domestic industry by making imported goods more expensive than equivalent goods produced domestically
Protective tariffs
Tariffs levied to raise revenue for the government
Revenue tariffs
Import taxes expressed in an amount of money per unit imported
Specific tariffs
Import taxes based on a fixed percentage of the assessed commercial value of imported goods
Ad-valorem tariffs
Taxes on imported goods that are a combination of a fixed amount and an amount based on the value of the goods
Compound tariffs
A quota that strictly limits the quantity of goods that may enter a country.
Absolute quota
A quota that permits a specified quantity of imported goods to enter a country at a reduced rate during the quota period.
Tariff-rate quota
A trade restriction on the quantity of a good that an exporting country is allowed to export to another country
Voluntary export restrictions
The process of buying goods and services by a government agency through a specific process of issuing bid proposals and seeking responses from companies.
Government procurement programs
A political or economic system that becomes self-sufficient to survive.
Autarky
