Economics & Pers Finance A – Global Economics – Flashcards

import

export

quota

protectionism

free trade

exchange rate

The United States imports thousands of tons of sugar each year from Brazil. If the US placed a quota on importing sugar from Brazil, it would be __________.

Which of the following phrases BEST defines the term export?

Which of the following phrases BEST defines the word import?

Which of the following situations would encourage a country to import a good like computers?

Trade barriers discourage consumers from buying imported goods because barriers can __________.

When a country enters a free trade agreement, which of the following issues might be a problem they face?

Exchange rates show the value of one country's currency in relation to other countries'__________.

Countries create quotas and tariffs in order to increase the volume of trade with their neighbors.

Which of the following results is NOT a way that trade can benefit all parties involved?

When countries create tariffs, they __________.

Why are quotas an example of protectionism?

NAFTA is a 1994 __________ between the United States, Mexico, and Canada.

Which of the following situations would most likely occur if the dollar's exchange value dropped in relation to the Japanese yen?

Countries need the right resources to create products. Which of the following factors is NOT a resource that a country might need in order to produce something to trade?

When the US dollar grows more valuable in relation to the euro, it has also grown more valuable in relation to every other currency.

absolute advantage

comparative advantage

law of comparative advantage

export

import

Since the 1980's the value of U.S. imports has greatly exceeded exports, resulting in large trade deficits that complicated U.S. relations with its trading partners. All of the following are leading partners of the Unites States EXCEPT:

List the five main activity patterns.

A country has an absolute advantage over its trading partners if it is able to produce more of a good or service with the same amount of resources or the same amount of a good or service with _______ resources.

The ability to produce a product most efficiently given all the other products that could be produced

The ability to produce a product most efficiently given all the other products that could be produced is called

A car made in Japan and sold in America would be considered an export from the point of view of the United States

Good or service bought from another country or region.

All of the following are aspects of human capital EXCEPT:

Ecuador has a comparative advantage in the production of bananas over the United States. Which of the following statements is true?

a good that is sent to another country for sale

According to the law of comparative advantage, a country should

Ed and Wendy decide to make extra money working at a local fair by painting names on coffee mugs and making sketches. Ed can paint 6 mugs or draw 2 sketches per hour. Wendy can paint 8 mugs or make 3 sketches per hour. Wendy has

is the ability to produce more of a given product using a given amount of resources

exchange rate

appreciation

depreciation

foreign exchange market

fixed exchanged-rate system

flexible exchange-rate system

trade surplus

trade deficit

balance of trade

When using a fixed exchange rate system, two governments may choose to make the values of their currencies ___________________.

Buying or selling foreign currency in order to profit from sudden changes in the rate of exchange is known as _______.

Suppose that there is a balance of trade in both the United States and Canada. Then, the U.S. dollar appreciates against the Canadian dollar. What would the likely outcome be?

Appreciation is a decrease in the value of currency.

What happens when a nation's currency depreciates?

the result of a nation's importing more than it exports

What was the result of the Bretton Woods Conference?

A fixed exchange rate system is a currency system in which governments try to keep the values of their currencies constant against one another.

economic interdependence

When a magazine reports that there has been a depreciation of the dollar, what does this mean?

the value of a foreign nation's currency in terms of the home nation's currency

What did the Bretton Woods Conference do?

In contrast to a fixed-rate system, what does a flexible exchange-rate system allow?

intermodal

fiber optics

globalization

Westernization

Economic interdependence has helped the world become more globalized.

The United States is not economically dependent on other countries for __________ because it specializes in producing them affordably.

Increases in transportation time and shipping costs have caused trade to decrease.

When using early sea and land trade routes like the Silk Road, traders often took __________ to bring products around the world.

Specialization encourages countries to be economically interdependent.

The costs of modern communication continue to decline because of __________.

Some nations are hesitant to embrace globalization because of the resulting increased

All of the following are impacts of modern information technology EXCEPT:

The long-distance trade between Polynesia's islands is best described as an example of __________.

The American coffee shop in the picture above, located in China, is an example of the __________ of culture.

When Polynesia was settled, __________ became a key to survival because each island had different resources.

The creation of a worldwide marketplace is one advantage of

When countries lose their unique qualities as globalization takes place, it is best described as a loss of __________ .

Westernization is best described as the process of cultures being influenced by __________.

The shipping technology in the picture above helps companies use multiple methods of transport to help trade more goods internationally. This is refered to as __________.