Advertisement Upgrade to remove ads

export

product sold to other countries

import

products bought from other countries

comparative advantage

ability of one country to produce a good at a lower cost, allows nations to specialize

tariff

tax on imported goods (also called a customs duty)

quota

minimum/maximum limit

free trade

no laws to limit or block trade (sanctions/embargo)

EU Eurepean Union

15 countries with free trade, most use common currency (the Euro)

NAFTA North America Free Trade Agreement

trade barriers loosened between US, Canada, Mexico, many opponents in US

WTO World Trade Organization

international group that oversees trade between nations

exchange rate

value of a nation's currency compared to another

balance of trade

difference between value of a nation's exports and imports, often based on exchange rate.

trade dificit

value of imports exceeds value of exports

trade surplus

value of exports exceeds value of imports

Pure Market economy

100% capitalism & free enterprise no gov't interference, (laissez-faire)

Per capita GDP=

GdP / populatopm

command economy

economic decisions made by central gov't (gov't owns factors of production... including labor)

socialism

society as a whole owns factors of production..eaither directly OR through government control

communism

one common class in society, no class struggle

Karl Marx

German writer, socialist/communists, wrote the communist Manifiesto, other works in favor of command economy

Mixed economy

combines basic elements of a pure market economy & pure comand economy, most countries have a mixed economy including the US .. combined private ownership of property/factors of production with some government regulation.

Developing countries

Third World Countries=nations where the average per capita income is only a fraction of that in more industrialized develped countries

traditional economy

system where things are done "the way they have always been done"...based on custom or habit, all people are farmers fishermen artisans etc. (NO INDUSTRY)

IMF

International Monetary Fund

WB

World Bank

IMF & WB

lend $ to developing countries to help them become more developed, countries often wind up in debt, unable to pay

Global Interpendence

people & nations all over the world depend on each other for many goods & services

Global economy

can be good and bad: lower prices, more selection BUT some companies out of business, nations hurt, workers lose jobs

Protectionism

a nation using traffits, quotas, etc, to "protect" its own industries (hoping tarriffs will cause citizens to buy domestic products)

Developing countries

most have food shortage, not much manufacturing high unemployment disease poverty few facilities for health care & education.

Please allow access to your computer’s microphone to use Voice Recording.

Having trouble? Click here for help.

We can’t access your microphone!

Click the icon above to update your browser permissions above and try again

Example:

Reload the page to try again!

Reload

Press Cmd-0 to reset your zoom

Press Ctrl-0 to reset your zoom

It looks like your browser might be zoomed in or out. Your browser needs to be zoomed to a normal size to record audio.

Please upgrade Flash or install Chrome
to use Voice Recording.

For more help, see our troubleshooting page.

Your microphone is muted

For help fixing this issue, see this FAQ.

Star this term

You can study starred terms together

NEW! Voice Recording

Create Set