Shared Flashcard Set

Details

Econ Unit 3
Econ 202 Unit 3
11
Economics
Undergraduate 1
12/04/2007

Additional Economics Flashcards

 


 

Cards

Term
exchange rate
Definition
the price of one currency in terms of another
Term
tariff
Definition
a taxon on an imported commodity
Term
import quota
Definition
a quantitive limitation on the amount of the commodity that may enter the country
Term
voluntary export restraint
Definition
the gov't of an importing country negotiates with the gov't of an exporting country a quantitative limitation on the export of a certain commodity
Term
ad valorem tax
Definition
a tax levied as the fixed percentage of the value of the product
Term
specific tax
Definition
levied as a fixed dollar amount per unit of the commodity regardless of its price
Term
Most Favored Nation (MFN) principle
Definition
adopted by the World Trade Orginization (WTO) it prohibits descrimination by country-sources of imports
Term
customs unions
Definition
a group of countries which abolish all trade restrictions among themselves and impose a uniform tariff on imports from outside countries (i.e. European Union)
Term
free trade area
Definition
has free trade among members but does not impose a common tariff on external imports. Each member country imposes its own restrictions (i.e. NAFTA)
Term
floating exchange rate
Definition
a currency that fluctuates freely on the market, and its exchange rate is determined by supply and demand conditions without government intervention.
Supporting users have an ad free experience!