Terms : Hide Images
| 344154124 | labor-intensive goods | a product requiring a relatively large amount of labor to be produced | |
| 344154125 | land-intensive goods | a product requiring a relatively large amount of land to be produced | |
| 344154126 | capital-intensive goods | a product that requires a relatively large amount of capital to be produced | |
| 344154127 | cost ratio | an equality showing the number of units of two products that can be produced with the same resources | |
| 344154128 | principle of comparative advantage | says that total output will be greatest when each good is produced by the nation that has the lowest domestic opportunity cost for that good | |
| 344154129 | terms of trade | the rate at which units of one product can be exchanged for units of another product | |
| 344154130 | trading possibilities line | a line that shows the different combinations of two products that an economy is able to obtain (consume) when it specializes in the production of one product and trades (exports) it to obtain the other product | |
| 344154131 | gains from trade | the extra output that trading partners obtain through specialization of production and exchange of goods and services. | |
| 344154132 | world price | the international market price of a good or service, determined by world demand and supply | |
| 344154133 | domestic price | the price of a good or service within a country, determined by domestic demand and supply | |
| 344154134 | export supply curve | an upward-sloping curve that shows the amount of a product that domestic firms will export at each world price that is above the domestic price | |
| 344154135 | import demand curve | a downsloping curve showing the amount of a product that an economy will import at each world price below the domestic price | |
| 344154136 | equilibrium world price | the price in a competitive market at which the quantity demanded and the quantity supplied are equal, there is neither a shortage nor a surplus, and there is no tendency for price to rise or fall | |
| 344154137 | tariffs | a tax imposed by a nation on an imported good | |
| 344154138 | revenue tariff | a tariff designed to produce income for the Federal government | |
| 344154139 | protective tariff | a tariff designed to shield domestic producers of a good or service from the competition of foreign producers | |
| 344154140 | import quota | a limit imposed by a nation on the quantity (or total value) of a good that may be imported during some period of time | |
| 344154141 | nontariff barrier (NTB) | all barriers other than protective tariffs that nations erect to impede international trade | |
| 344154142 | voluntary export restriction (VER) | voluntary limitations by countries or firms of their exports to a particular foreign nation to avoid enactment of formal trade barriers by that nation | |
| 344154143 | strategic trade policy | the use of trade barriers to reduce the risk inherent in product development by domestic firms, particularly that involving advanced technology | |
| 344154144 | dumping | the sale of products below cost in a foreign country or below the prices charged at home | |
| 344154145 | World Trade Organization | an organization of 145 nations that oversees the provisions of the current world trade agreement, resolves trade disputes stemming from it, and holds forums for further rounds of trade negotiations | |
| 344154146 | balance of payments | a summary of all the transactions that took place between the individuals, firms, and government units of one nation and those of all other nations during a year. | |
| 344154147 | current account | the section in a nation's international balance of payments that records its exports and imports of goods and services, its net investment income, and its net transfers | |
| 344154148 | balance on goods and services | the exports of goods and services of a nation less its imports of goods and services in a year | |
| 344154149 | trade deficit | the amount by which a nation's imports of good exceed its exports of goods | |
| 344154150 | trade surplus | the amount by which a nation's exports of goods exceed its imports of goods | |
| 344154151 | balance on current account | the exports of goods and services of a nation less its imports of goods and services plus its net investment income and net transfers in a year | |
| 344154152 | capital account | the section of a nation's international balance-of-payments statement that records the foreign purchases of assets in the United States (creating monetary inflows) and U.S. purchases of assets abroad (creating monetary outflows) | |
| 344154153 | balance on capital account | the foreign purchases of assets in the United States less American purchases of assets abroad in a year | |
| 344154154 | official reserves | foreign currencies owned by the central bank of a nation | |
| 344154155 | balance-of-payments deficits | the amount by which the sum of the balance on current account and the balance on capital account is negative in a year | |
| 344154156 | balance-of-payments surpluses | the amount by which the sum of the balance on current account and the balance on capital account is positive in a year | |
| 344154157 | flexible- or floating-exchange-rate system | a rate of exchange determined by the international demand for and supply of a nation's money; a rate free to rise or fall | |
| 344154158 | fixed-exchange-rate system | a rate of exchange that is set in some way and therefore prevented from rising and falling with changes in currency supply and demand | |
| 344795558 | Purshasing-power-parity theory | The idea that exchange rates between nations equate the purchasing power of various currencies. Exchange rates between any two nations adjust to reflect the price-level differences between the countries. | |
| 344795559 | Currency interventions | A government's buying and selling of its own currency or foreign currencies to alter international exchange rates | |
| 344795560 | Exchange controls | The control a government may exercise over the quantity of foreign currency demanded by its citizens and firms and over the rates of exchange in order to limit its outpayments to its inpayments (to eliminate a payments deficit) | |
| 344795561 | Gold standard | a historical system of fixed exchange rates in which nations defined their currencies in terms of gold, maintained a fixed relationship between their stocks of gold and their money supplies, and allowed gold to be freely exported and imported | |
| 344795562 | Devaluation | a decrease in the governmentally defined value of a currency | |
| 344795563 | bretton woods system | the international monetary system developed after the Second World War in which adjustable pegs were employed, the International Monetary Fund helped stabilze foreign exchange rates, and gold and the dollar were used as international monetary reserves | |
| 344795564 | International monetary fund (IMF) | the international association of nations that was formed after the Seond World War to make loans of foreign monies to nations with temporary payment deficits and, until the 1970s, to administer the adjustable pegs. It now mainly makes loans to nations facing possible defaults on private and government loans | |
| 344795565 | Managed floating exchange rates | an exchange rate that is allowed to change (float) as a result of changes in currency supply and demand but at times is altered (managed) by governments via their buying and selling of particular currencies. |
