International Economy Chapter 18-20

The ability of a country to produce a good at a lower opportunity cost than another country

The ability of a country to produce a good at a lower opportunity cost than another county.

The flow of goods between countries without restrictions or special taxes

The government's use of embargoes, tariffs, quotas, and other restrictions to protect domestics producers from foreign competition

A law that bars trade with another country

A tax on imports

An international organization of members countries that oversees international trade agreements and rules on trade disputes

A Limit on the quantity of a good that may be imported in a given time period

A bookkeeping record of all the international transactions between a country and other countries during a given period

The value of a nations imports subtracted from its exports. Balance of trade can be expressed in terms of goods, services, or good and services.

The number of units of one nations currency that equals one unit of another nation's currency.

A fall in the price of one currency relative to another

A rise in the price of one currency relative to another

The organizations and methods used to determine what goods and services are produced, how they are produced, and for whom they are produced.

An economic system that answers the What, How, and For Whom questions the way they have always have been answered.

An economic system that answers the What, How, and For Whom questions by a dictator or central authority.

An economic system that answers the What, How, and For Whom questions using prices determined by the interaction of the force of supply and demand

A Phrase that expenses the belief that the best interests of a society are served when individual consumers and producer compete to achieve their own private interests.

An economic system that answers the What, How, and For Whom questions through a mixture of traditional, command, and market systems.

An economic system characterized by private ownership of resources and markets

The freedom of consumers to cast their dollar votes to buy, or not to buy, at prices determined in competitive markets.

An economic system characterized by government ownership of resources and centralized decision making.

A stateless, classless economic system in which all the factors of production are owned by the workers and people share in production according to their needs. In Marx's view, this is the highest form of socialism toward which the revolution should strive.

the value of final goods produced (GDP) divided by the total population

High-income nations that have market economics based on large stocks of technologically advanced capital and well-educated labor. The United States, Canada, Australia, New Zealand, Japan, and most of the countries of Western Europe are IACs.

Nations without large stocks of technologically advanced capital and well-educated labor. LDCs are economics, based on agriculutre such as most countries of Africa, Asia, and Latin America.

The trap in which countries are poor because they cannot afford to save and invest., but they cannot save and invest because they are poor.

Capital goods usually provided by the government, including highways, bridges, waste and water systems, and airports.

The transfer of money of resources from one goverment to another with no repayment required.

The agency of the U.S. State Department that is in charge of U.S. aid to foreign countries.

The lending agency that makes long term low-interested loans and provides technical assistance to less-developed countries

The lending agency that makes short-term conditional low-interest loans to developing countries.