AP Econ Unit Seven Flashcards
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| 6748975689 | Closed Economy | An economy that has no international trade. THIS DOES NOT REALLY EXIST IN THE REAL WORLD. | 0 | |
| 6748982852 | Open Economy | an economy that interacts freely with other economies around the world | 1 | |
| 6748990604 | Exports | Goods and Services sold to other countries | 2 | |
| 6748993243 | Imports | goods and services brought into a nation from another nation | 3 | |
| 6748998228 | Balance of Trade | the difference between a country's total exports and total imports | 4 | |
| 6749000696 | Net Exports | exports minus imports | 5 | |
| 6749003405 | Balance of Payments | a system of recording all of a country's economic transactions with the rest of the world over a period of one year | 6 | |
| 6749008688 | Current Account | a portion of the balance of payments comprised of the trade balance, net investment income, and net transfers | 7 | |
| 6749019283 | Capital and Financial Account | a portion of the balance of payments comprised of the purchase or sale of assets in other countries; includes financial assets like stocks or bonds | 8 | |
| 6749041164 | Investment Income | The result of earnings from dividends, interest, profit and rent | 9 | |
| 6749054781 | Net Transfers | foreign aid sent to other countries and funds that immigrants send to family abroad | 10 | |
| 6749199376 | Deficit | A negative balance | 11 | |
| 6749205499 | Surplus | A positive balance | 12 | |
| 6749211638 | Foreign Exchange | a market in which currencies of different countries are bought and sold | 13 | |
| 6749217103 | Exchange Rate | The measure of how much one currency is worth in relation to another. | 14 | |
| 6749220328 | FOREX | Also called FX, refers to Foreign Exchange, in which foreign currencies are bought and sold | 15 | |
| 6749222317 | Appreciation | an increase in the value of a currency as measured by the amount of foreign currency it can buy | 16 | |
| 6749237766 | Depreciation | A decrease in the value of currency | 17 | |
| 6749258658 | Capital Flow | the movement of money into and out of a country due to differences in interest rates | 18 | |
| 6749272849 | Barriers to Trade | Government policies that restrict international trade, such as the establishment of import or export quotas or tariffs. | 19 | |
| 6749278689 | Import Quota | a limit on the amount of a good that can be imported | 20 | |
| 6749284334 | Import Tariff | A tax imposed on imports. | 21 | |
| 6749290041 | Export Subsidy | A government payment to a domestic producer to enable the firm to reduce the price of a good or service to foreign buyers. | 22 | |
| 6749296793 | NAFTA | A trade agreement between Canada, the United States and Mexico that encourages free trade between these North American countries. | 23 | |
| 6749307681 | European Union | An international organization of European countries formed after World War II to reduce trade barriers and increase cooperation among its members. | 24 | |
| 6749311116 | World Trade Organization | An international agency which encourages trade between member nations, administers global trade agreements and resolves disputes when they arise. | 25 |