Term
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Definition
| goods & services purchased from other countries |
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Term
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Definition
| goods & services sold to other countries |
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Term
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Definition
| the phenomenon of gorwing economic linkages among countries |
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Term
| ricardian model of international trade |
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Definition
| analyzes international trade under the assumption that opportunity costs are constant |
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Term
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Definition
| a measure of which factor is used in relatively greater quantities than other factors in production |
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Term
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Definition
| a country has a comparative advantage in a good whose production is intensive in the factors that are abundantly available in that country |
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Term
| _____ & exports account for a growing share of the US economy & the economies of many other countries |
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Definition
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Term
| the growth of international trade & other international linkages is known as _____ |
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Definition
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Term
| the _____ shows that trade between two countries make both countries better off than they would be in autarky - that is, there are gains from trade |
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Definition
| ricardian model of international trade |
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Term
| the _____ shows how comparative advantage can arise from differences in factor endowments: goods differ in their factor intensity, & countries tend to export goods that are intensive in the factors they have in abundance |
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Definition
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Term
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Definition
| shows how the quantity of a good demanded by domestic consumers depends on the price of that good |
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Term
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Definition
| shows how the quantity of a good supplied by domestic producers depends on the price of that good |
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Term
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Definition
| the price at which that good can be bought or sold abroad |
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Term
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Definition
| produce goods & services that are sold abroad |
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Term
| import-competing industries |
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Definition
| produce goods & services that are also imported |
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Term
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Definition
| when the government does not attempt either to reduce or to increase the levels of exports & imports that occur naturally as a result of supply & demand |
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Term
| the intersection of the _____ & the domestic supply curve determines the domestic price of a good |
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Definition
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Term
| when a market is opened to international trade, the domestic price is driven to equal the ____ |
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Definition
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Term
| trade leads to an expansion of _____, which increases demand for a country's abundant factors, & a contraction of import-competing industries, which decreases demand for its scarce factors |
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Definition
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Term
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Definition
| policies that limit imports |
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Term
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Definition
| policies that limit imports |
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Term
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Definition
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Term
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Definition
| a legal limit on the quantity of a good that can be imported |
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Term
| most economists advocate _____, although many governments engage in trade protection of import-competing industries |
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Definition
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Term
| a _____ is a tax on imports |
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Definition
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Term
| an _____ is a legal quantity limit on imports |
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Definition
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Term
| international trade agreements |
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Definition
| treaties in which a country promises to engage in less trade protection against the exports of other countries in return for a promise by other countries to do the same for its own exports |
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Term
| north american free trade association (NAFTA) |
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Definition
| a trade agreement among the United States, Canada, & Mexico |
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Term
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Definition
| a customs union among 27 European nations |
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Term
| world trade organization (WTO) |
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Definition
| oversees international trade agreements & rules on disputes between countries over those agreements |
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Term
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Definition
| businesses hire people in another country to perform various tasks |
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Term
| to further trade liberalization, countries engage in _____ |
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Definition
| international trade agreements |
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Term
| some agreements are only for a small number of countries, such as the _____ & the European Union (EU) |
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Definition
| North American Free Trade Assocation (NAFTA) |
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Term
| the _____ is a multinational organization that seeks to negotiate global trade agreements as well as referee trade disputes between members |
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Definition
| world trade organization (WTO) |
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Term
| greater resistance to globalization has emerged over the past few years in response to a surge in imports from relatively poor countries & the _____ of many jobs that had previously been considered safe from foreign competition |
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Definition
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