Term
|
Definition
| means that each nation specializes in a product for which its opportunity cost is lower in terms of the production of another product and then nations trade. |
|
|
Term
|
Definition
| benefits a nation as a whole but individuals may lose jobs and incomes from the competition from foreign goods and services. |
|
|
Term
|
Definition
| A government's use of embargos, tariffs, quotas, and other methods to protect particular domestic industries by imposing barriers that reduce imports is called |
|
|
Term
|
Definition
| An_____ prohibits the import or export of particular goods and a ______ discourages imports by making them more expensive. These trade barriers often result primarily from domestic groups that exert political pressure to gain from these barriers. |
|
|
Term
|
Definition
| A_________ is a summary bookkeeping record of all the international transactions a country makes during a year. It is divided into different accounts including the current account, the capital account, and the statistical discrepancy. |
|
|
Term
|
Definition
| The_______ measures only merchandise goods (not services) that a nation exports and imports. It is the most widely reported and largest part of the current account. |
|
|
Term
|
Definition
| An_______ is the price of one nation's currency in terms of another nation's currency. The intersection of the supply and demand curves for dollars determines the number of units of a foreign currency per dollar. |
|
|
Term
| Depreciation of currency, appreciation of currency |
|
Definition
| ________ occurs when a currency becomes worth fewer units of another currency and ______ occurs when a currency becomes worth more units of another currency. |
|
|
Term
|
Definition
| A______ is a limit on the quantity of a good that may be imported in a given time period. |
|
|
