Economy
Terms
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- Trade
- the voluntary exchange of goods or servicess between two nations
- import
- goods and services produced in a foreign country and then brought into and sold in a domestic market
- exports
- goods and services produced in a domestic market and sold in a foreign country
- specialiation
- a situation that occurs when individuals or businesses produce a narrow range of products
- economic interdependence
- producers in one nation depend on others to provide goods and services they dont produce
- absolute advantage
- the ability of one trading nation to make a product more efficiently than another trading nation
- comparative advantage
- a nation will specialize in what it can produce at a lower opportunity cost than any other nation
- The European Union (EU)
- worlds biggest trader
- north american free trade agreement (Nafta)
- free trade with canada, us, and mexico
- organization of petroleum exporting countries (opec)
- cartel formed in the 60's that attempts to control the cartel petroleum market
- cartel
- a group of producers that regulates the production, pricing, and marketing of a product
- GATT
- created after WW2 to promote world peace through trade
- trade barrier
- any law passed to limit free trade among nations
- quota
- limits on the amount of a product that can be imported
- tarriff
- a fee charged for goods brought into a country from another country
- revenue tariff
- taxes on imports specifically to raise money
- protective tariff
- taxes on imported goods to protect a domestic industry
- Voluntary restraint
- a limit on the number of goods that a country exports to avoid paying a tariff to another country
- embargo
- a law that cuts off most or all trade with a specific country (used for political manipulation)
- informal trade barrier
- an indirect barrier to trade the results from another law
- purpose of a trade organization
- to promote free trade on regional and world levels
- developed nations
- nations of the world with the highest standard of living
- transitional economies
- countries that have moved or are moving from a command economy to a market economy
- less developed countries
- countries with lower gdp's less well developed industry, and a lower standard of living
- infrastructure
- the basic set of support systemsssss needed to keep the economy going
- per capita gross domestic product
- a nations overall gdp divided by its total population
- infant mortality rate
- the number of children who die within the first year of life per 1000 births
- life expectancy
- the average # of years a person can expect to live
- literacy rate
- the percentage of people older than 15 who can read and write