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Details Title: Unit 5:International Economics Description: Terms from Chapters 18-21 Total Flash Cards: 27 Created: 10/18/2005 05:15:31	To study from this set of flash cards, or to create your own your own study flash cards, register HERE. If you are already a registered user, CLICK HERE.
Cards Term Absolute Advantage Definition Country's ability to produce more of a given product than can another country Term Comparative Advantage Definition Country's ability to produce a given product relatively more efficiently than another country; production at a lower opportunity cost Term Exchange Rate Definition When the price of one country's currency is described in terms of another country's currency. Term Command Economy Definition Economic System characterized by a central authority that makes most of the major economic decisions Term Market Economy Definition economic system in which supply, demand, and the price system help people make decisions and allocate resources; same as free enterprise economy. Term Mixed-Market Economy Definition Free enterprise sytem with some government involvement; same as modified private enterprise economy. Term Tariff Definition tax placed on an imported product Term Quota Definition limit on the amount of a good that can be allowed into a country Term Protective Tariff Definition tax on an imported product designed to protect less efficient domestic producers. Term Revenue Tariff Definition tax placed on imported goods to raise revenue Term Infant Industries Definition new and emerging industries. There is an arguement that these industries should be protected from foreign competition until they are strong enough to compete. Term Trade Deficit Definition Balance of payments outcome when spending on imports exceeds revenues received from export. Term Balance of Payment Definition difference between money paid to, and received from, other nations in trade. Term Most Favored Nation Clause Definition Trade law allowing a third country to enjoy the same tariff reductions the United States negotiates with another country. Term NAFTA Definition North American Free Trade Agreement; agreement signed in 1993 to reduce tariffs between the United States, Canada, and Mexico. Term Foreign Exchange Definition Foreign currencies used by countries to conduct international trade. Term Socialism Definition Economic system in which government owns some factors of production and has a role in determining what and how goods are produced. Term Collectivization Definition Forced common ownership of factors of production; used in the former Soviet Union in agriculture and manufacturing under Stalin. Term Privatization Definition Conversion of state-owned factories and other property to private ownership Term Black Market Definition Market in which economic products are sold illegally Term Asian Tigers Definition Singapore, Tiawan, and South Korea- have made striking economic progress during the last 30 years. Term Developing Countries Definition Country whose average per capita income is only a fraction of that in more industrialized countries. Term European Union Definition Successor of the European Community established in 1993 by the Maastrich Treaty. Term Euro Definition Single currency of the European Union Term OPEC Definition Organization of Petroleum Exporting Countries- Oil Producing cartel that agrees to limit the production or sale of a product to control prices. Term Cartel Definition A group of producers or sellers who agree to limit the production or sale of a product to control prices. Term Subsistence Definition State in which a society produces barely enough to support itself.