Details

Title: Ch 15:International Trade

Description: Unit 6 - Foundations of Macroeconomics

Total Flash Cards: 13

Created: 01/22/2008 11:35:16

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Cards in this set:

Term
Balance of Trade
 Definition
The value of exports minus the value of imports
Term
Learning by doing
 Definition
Repeatedly performing the same task and becoming more productive at producing a particular good or service
Term
Dynamic Comparative Advantage
 Definition
A comparative advantage that a person or country obtains by specializing in an activity, resulting from learning-by-doing
Term
Tariff
 Definition
A tax on a good that is imposed by the importing countryu when an imported good crosses its international boundary
Term
Nontariff barrier
 Definition
Any action other than a tariff that restricts international trade
Term
Quota
 Definition
A specified maximum amount of a good that may be imported in a given period of time
Term
Infant-industry argument
 Definition
The argument that it is necessary to protect a new industry to enable it to grow into a mature industry that can compete in world markets
Term
Dumping
 Definition
When a foreign firm sells its exports at a lower price than the price in the foreign firm's domestic market
Term
Rent seeking
 Definition
Lobbying and other political activity that seeks to capture gains from trade
Term
Describe the patters and trends in international trade
 Definition
P.223
Term
Explain why nations engage in international trade and why trade benefits all nations
 Definition
P.223
Term
Explain how trade barriers reduces trade
 Definition
P.223
Term
Explain the arguments used to justify trade barriers and show why they are incorrect but also why some barriers are hard to remove
 Definition
P.223