chapter 23
Terms
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- WTO
- world trade organization
- European Union
- organization of independent European nations, use the euro
- command market
- decisions are made by the government, less economic freedom
- balance of trade
- the difference between a countries imports and exports
- con of NAFTA
- americans lose jobs because mexico has cheaper labor and less stringent laws
- per capita GDP
- divides the total GDP by the country's population
- quotas
- limit on amount of foreign goods imported
- what does WTO do?
- organizes negotiations about trade rules and provides help to countries trying to improve thier economies
- comparative advantage
- the ability of a country to produce a good at a lower cost than another
- trade surplus
- whenever a country exports more than it imports
- Gosplan
- part of government that made economic decisions for Russia when it was a communist
- mixed economy
- what most countries have, a mixture of both market and command
- imports
- products purchased from abroad
- what happens when currency losses value
- it leads people to lose jobs
- market economy
- private citizens own the factors of production, decisions are made by the people
- goal of tariffs
- to make the price of imported good higher than the price of the same good produced domestically
- exchange rate
- the worth of a countries money compared to another currency
- mistakes Gosplan made
- supplies didn't arrive on time, too little or too much of an item was produced, supplies weren't delivered to the places that needed them the most
- tariff
- a tax on imported good
- communism
- one group, property would all be held in common
- trade deficeit
- whenever a country imports more than it exports
- goal of quotas
- protects the workers, makes foreign goods harder to obtain
- Economic Improvements in China
- made factories privately owned, set up stock exchange, 10% growth in last 20 years, farmers can't compete
- capitolism
- another name for a market economy
- exports
- products sold to other countries
- what does international trade do for our country?
- way nations solve problem of scarcity, to obtain goods they cannot produce, create jobs, and reflect comparative advantage
- more exports
- exchange rate goes down
- NAFTA
- north american free trade agreement
- Organizations that help developing countries
- International Monetary Fund, World Bank
- free trade
- trying to convince countries not to pass laws limiting or blocking trade
- socialism
- belief that the means of productions should be be owned and controled by society
- pro of NAFTA
- increased trade stimulates economic growth and puts more low cost idems on the market
- economic problems developing countries have
- high population growth, geography, landlocked, war torn, land mines, severe debt, corruption
- traditional economy
- the old way of doing things, way that things have always been done
- less exports
- exchange rate goes up
- barriers to trade
- tariffs and quotas