Holt Economics Chapter 18
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Created by:
sarahwiz210 on May 30, 2011
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Description:
holt economics chapter 18 review international trade identifying ideas page 448
Classes:
Y.A.L.E. Faculty Editors, YALE Students
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10 terms
Terms | Definitions |
|---|---|
 absolute advantage | This is an advantage where one can produce a certain good with greater efficiency than can its partner in trade. |
| comparative advantage | This is the advantage that can be found by determining where the greatest absolute advantage occurs for each nation. |
| floating exchange rate | With these exchange rates, the value of currency is determined by the laws of demand and supply. |
| balance of payments | This is an annual accounting record of all the payments and receipts occurring between its residents, businesses, and governments and the residents, businesses, and governments of other nations. |
| trade deficit | This is when the United States imports more than it exports. |
| trade barrier | These are government actions that are designed to protect domestic industries and jobs from foreign competition. |
| protective tariff | These are tariffs that restrict the number of foreign goods sold in a country. |
| import quota | This is a law that sets a fixed amount of an item that can be imported. |
| free trade | This is international trade that is not subject to government regulation. |
| protectionism | This is the use of protective tariffs between nations to favor domestic industries. |
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