Term
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Definition
| The ability of one person or nation to produce a particular good at a lower cost than another person or nation (p443) |
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Term
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Definition
| – The ability of ne person or nation to produce a good at opportunity costs that are lower than that of another person or nation (p443) |
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Term
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Definition
| -- The main economic system used during the sixteenth to eighteenth centuries. The main goal was to increase a nation's wealth by imposing government regulation concerning all of the nation's commercial interests. It was believed that national strength could be maximized by limiting imports via tariffs and maximizing exports. |
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Term
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Definition
| – Neomercantilism is a term used to describe a policy regime which encourages exports, discourages imports, controls capital movement and centralizes currency decisions in the hands of a central government. ... |
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Term
| Favorable balance of trade |
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Definition
| – BOT is relationship between a nation’s imports and exports. A favorable balance means exports > imports (p463) |
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Term
| Unfavorable balance of trade |
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Definition
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Term
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Definition
| – The result of a country importing more than it exports. So it runs an unfavorable balance of trade (p463) |
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Term
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Definition
A record of all transactions made between one particular country and all other
countries during a specified period of time. BOP compares the dollar
difference of the amount of exports and imports, including all financial
exports and imports. A negative balance of payments means that more
money is flowing out of the country than coming in, and vice versa. |
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Term
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Definition
| - A tax on imported goods to protect a domestic industry (p450) |
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Term
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Definition
| – A tax on imported goods levied primarily to generate revenue for the federal government. |
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Term
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Definition
| - A government order that restricts commerce or exchange with a specified country. An embargo is usually created as a result of unfavorable political or economic circumstances between nations. The restriction looks to isolate the country and create difficulties for its governing body, forcing it to act on the underlying issue. |
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Term
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Definition
| -- In the context of international trade, this is a limit put on the amount of a specific good that can be imported. Prevents other countries from “dumping”. |
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Term
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Definition
| a government payment that supports a business or market (p117) |
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Term
| Infant Industries – a new industry (p452) |
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Definition
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Term
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Definition
| -- General Agreement on Tariffs and Trade, an international treaty (1948–94) to promote trade and economic development by reducing tariffs and other restrictions. It was superseded by the establishment of the World Trade Organization in 1995 |
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Term
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Definition
| - The European Free Trade Association (EFTA) is a free trade organisation between four European countries that operates parallel to, and is linked to, the European Union (EU). |
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Term
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Definition
| – North American Free Trade Agreement: an agreement for free trade between the United States and Canada and Mexico; became effective in 1994 for ten years |
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Term
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Definition
| – Strong/Weak: A situation where the U.S. dollar's value is increasing/decreasing relative to one or a basket of foreign currencies. Essentially, a strong/weak dollar means that a U.S. dollar can exchange for more/fewer amounts of foreign currency. The dollar may strengthen/weaken due to changes in the interest rate and outlook on the U.S. economy's future. |
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