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Term
Imports
[International Trade] |
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Definition
| Goods and services purchased from other countries |
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Term
Free Trade
[International Trade] |
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Definition
| Trade that is unregulated by government tariffs or other artificial barriers; the levels of exports and imports occur naturally as a result of supply and demand. |
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Term
Protection
[International Trade] |
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Definition
| An alternative term for "trade protection"; policies that limit imports |
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Term
Tariff
[International Trade] |
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Definition
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Term
Import Quota
[International Trade] |
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Definition
| A legal limit on the quantity of a good that can be imported |
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Term
International Trade Agreements
[International Trade] |
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Definition
| Treaties by which countries agree to lower "trade protections" against one another |
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Term
Comparative Advantage
[International Trade] |
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Definition
| The advantage conferred on an individual or nation in producing a good or service if the "opportunity cost" of producing the good or service is lower for that individual or nation that for other producers. |
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Absolute Advantage
[International Trade] |
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Definition
| The advantage conferred on an individual in an activity if s/he can do it better than other people |
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Term
Production Possibility Frontier
[International Trade] |
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Definition
| Illustrates the tradeoffs facing an economy that produces only two goods. It shows the maximum quantity of one good that can be produced of the other. |
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