International Vocab Flashcard

Front

What does the term "Absolute advantage" refer to in international economics?

Back

Producing a good with fewer resources than another country

Front

What is meant by "Free trade"?

Back

Unrestricted flow of goods, services, and resources between countries

Front

Which of the following best describes "Protectionism"? Options: Encouraging trade by reducing tariffs, Promoting free trade agreements, Decreasing government intervention in trade.

Back

Policy of establishing trade barriers to protect domestic industries

Front

What is a "Subsidy" in the context of international trade?

Back

A government payment to a supplier of goods or services to support the business

Front

What does "Tariff" mean?

Back

A tax on imported goods

Front

What is the definition of "Exchange rate"?

Back

The price of one country's currency in terms of another's

Front

What does "Depreciation" refer to in economic terms?

Back

The decrease in value of a currency relative to another

Front

When a country can produce a product at a lower opportunity cost than another country

Back

comparative advantage

Front

an official ban on trade or other commercial activity with a particular country.

Back

embargo

Front

Purchase of an asset by a company in a different country is called _____________ .

Back

foreign direct investment