International Trade and Money Questions and Answers 2023

Comparative Advantage - -the ability to produce a good at a lower opportunity cost than another producer -Terms of Trade - -The amount of an exported good that must given up to obtain an imported good - measured by the ratio of a country's export prices to its import prices. -Protective Tariffs - -A tariff designed to shield domestic producers of a good or service from the competition of foreign producers -Import Quotas - -a limit imposed by a nation on the quantity (or total value) of a good that may be imported during some period of time -Nontariff Barrier - -governmental restrictions not involving a tax or duty that increase the cost of importing goods into a country -Export Subsidies - -government payments made to domestic firms to encourage exports -Dumping - -selling goods abroad at a price below that charged in the domestic market -WTO - -an international organization based in Geneva that monitors and enforces rules governing global trade -NAFTA - -North American Free Trade Agreement; allows open trade with US, Mexico, and Canada -Trade Bloc - -A group of countries that work together to promote trade with each other -Embargo - -an order forbidding the trade in or movement of commercial goods; any restraint or hindrance; to forbid to enter or leave port; to forbid