Details Title: Ch 15:International Trade Description: Unit 6 - Foundations of Macroeconomics Total Flash Cards: 13 Created: 01/22/2008 11:35:16		New Users: To study from this flashcard set, or to create your own your own study flash cards, REGISTER HERE. Existing Users: CLICK HERE. Additional Economics Flashcards
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