Trade

Question 1

Protectionism

Answer 1

protecting domestic industries from foreign competitors through series of policy choices ex. (tariffs, quotas, subsidies)

Question 2

Comparative Advantage

Answer 2

states advantage to produce one product over another (depends on: natural resources, labor force, technology, geography)

Question 3

Import Substitution Industrialization

Answer 3

produce everything you need domestically

Question 4

NAFTA

Answer 4

North American Free Trade Agreement

Question 5

Quotas

Answer 5

limit imported goods with same demand so price for the foreign good goes up

Question 6

Subsidies

Answer 6

decrease price on domestic goods through tax cuts etc

Question 7

Monopolies

Answer 7

restrict competition, only one option for goods, prices go up

Question 8

Autarky

Answer 8

economic independence and self sufficiency

Question 9

Tariffs

Answer 9

increase taxes on imported goods to raise price on the foreign goods

Question 10

Non-tariff barriers

Answer 10

subsidies, quotas, restrictions and regulations

Question 11

Economic Liberalism

Answer 11

free trade is more profitable, governments should stay out

Question 12

Race to the bottom

Answer 12

going to cheaper places to produce goods

Question 13

Dumping

Answer 13

predatory mechanism of flooding market with product below market value to drive price low and make competitors go out of business

Question 14

Oligopolies

Answer 14

3-4 producers have control of market, not always price fixing but limited amount of options so prices can be higher