UNIT 2: INTERNATIONAL TRADE

The purchase, sale, or exchange of goods and services across national borders is called ______

A trade theory which holds that a government can improve the economic well-being of the country by encouraging exports and stifling imports to accumulate wealth in the form of precious metals

______ is the condition that results when the value of a nation's exports is greater than the value of imports

A condition that results when the value of a country's imports is greater than the value of its exports is called ______

Sendings goods to another country for sale or trade is called a ______

A trade theory which holds that nations can increase their economic well-being by specialising in goods that they can produce more efficiently than anyone else is called ______

Bringing in goods from another country for sale or trade is called ______

______ is a trade theory which holds that nations should produce those goods for which they have the greatest relative advantage.

A trade theory which holds that nations will produce and export products that use large amounts of production factors that they have in abundance and will import products requiring a large amount of production factors that they lack

Financial assistance to domestic producer in the form of cash payments, low-interest loans, tax breaks, product price supports, or some other form is called ______