Chapter 37: International Trade

Goods whose design and production require much skilled labor

The ________ and trade is equivalent to having more and better resources or discovering improved production techniques.

Goods that require vast amounts of land

Goods whose production requires much capital

The domestic exchange ratio for two products

Total output will be greatest when each good is produced by the nation that has the lowest domestic opportunity cost for that good

The exchange ratio at which 2 nations trade 2 goods

Shows the amounts of two products a nation can obtain by specializing in one product and trading for the other

The net benefits to economic agents from being allowed an increase in voluntary trading with each other

The price that equates the quantities supplied and demanded globally

The price that would prevail in a closed economy that does not engage in international trade

Shows the amount of a good that the producers of a nation will export at each world price

Shows the amount of a good that a nation will import at each world price

The price of a good at equilibrium world levels of exports and imports when the world is opened to trade

Excise taxes on imported goods

Usually applied to a product that is not being produced domestically

Designed to shield domestic producers from foreign competition

Specifies the maximum amount of a commodity that may be imported in any period

Refers either to a licensing requirement that specifies unreasonable standards pertaining to product quality and safety, or to unnecessary bureaucratic red tape that is used to restrict imports

A trade barrier by which foreign firms “voluntarily” limit the amount of their exports to a particular country

________ requires different technologies or resources.

The advances achieved in one domestic industry often can be transferred to other domestic industries

The sale of a product in a foreign country at prices either below cost or below the prices commonly charged at home

Although that act was meant to reduce imports and stimulate U.S. production, the high tariffs it authorized prompted adversely affected nations to retaliate with tariffs equally high

Oversees trade agreements and rules on disputes relating to them

Goods whose design and production require much skilled labor

Goods that require vast amounts of land

Goods whose production requires much capital

The domestic exchange ratio for two products

Total output will be greatest when each good is produced by the nation that has the lowest domestic opportunity cost for that good

The exchange ratio at which 2 nations trade 2 goods

Shows the amounts of two products a nation can obtain by specializing in one product and trading for the other

The net benefits to economic agents from being allowed an increase in voluntary trading with each other

The price that equates the quantities supplied and demanded globally

The price that would prevail in a closed economy that does not engage in international trade

Shows the amount of a good that the producers of a nation will export at each world price

Shows the amount of a good that a nation will import at each world price

The price of a good at equilibrium world levels of exports and imports when the world is opened to trade

Excise taxes on imported goods

Usually applied to a product that is not being produced domestically

Designed to shield domestic producers from foreign competition

Specifies the maximum amount of a commodity that may be imported in any period

Refers either to a licensing requirement that specifies unreasonable standards pertaining to product quality and safety, or to unnecessary bureaucratic red tape that is used to restrict imports

A trade barrier by which foreign firms "voluntarily" limit the amount of their exports to a particular country

Protective tariffs are needed to preserve or strengthen industries that produce the materials essential for national defense

The economies of unstable nations need tariff and quota protection to enable greater industrial diversification

Protective tariffs are needed to allow new domestic industries to establish themselves

The advances achieved in one domestic industry often can be transferred to other domestic industries

Tariffs are needed to protect domestic firms from "dumping" by foreign producers

The sale of a product in a foreign country at prices either below cost or below the prices commonly charged at home

A tariff will save US jobs

Although that act was meant to reduce imports and stimulate U.S. production, the high tariffs it authorized prompted adversely affected nations to retaliate with tariffs equally high

Domestic firms and workers must be shielded from the ruinous competition of countries where wages are low

Oversees trade agreements and rules on disputes relating to them