Econ - Globalization and Trade vocab

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specialization

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Economics

19 Terms

1

specialization

a particular area which someone concentrates on/ is an expert on

<p>a particular area which someone concentrates on/ is an expert on </p>
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2

comparative advantage

when a country can produce a good at a lower opportunity cost

<p>when a country can produce a good at a lower opportunity cost</p>
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3

Absolute advantage

when a country can produce more of a good using the same quantity of resources

<p>when a country can produce more of a good using the same quantity of resources </p>
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4

production possibilities curve

shows possible alternatives of production/ illustrates trade offs and opportunity costs

<p>shows possible alternatives of production/ illustrates trade offs and opportunity costs</p>
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5

opportunity cost

the most valued alternative you give up when you make a choice

<p>the most valued alternative you give up when you make a choice</p>
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6

tariff

a tax on imports so they become more expensive - makes people want to buy from American companies rather than foreign companies

<p>a tax on imports so they become more expensive - makes people want to buy from American companies rather than foreign companies </p>
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7

quota

a legal limit on the amount of a good that may be imported from other countries - meant to protect American companies from competition of other countries

<p>a legal limit on the amount of a good that may be imported from other countries - meant to protect American companies from competition of other countries</p>
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8

embargo

a government order prohibiting the selling of goods to another country - usually because that country has bad/tyrannical/cruel leaders

<p>a government order prohibiting the selling of goods to another country - usually because that country has bad/tyrannical/cruel leaders</p>
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9

world trade organization (WTO)

formed to help make trade agreements and settle trade disputes between countries

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10

US-Mexico-Canada (USMCA)

A major free trade agreement was created that includes Canada, Mexico, and the United States.  -Lowers trade restrictions between the countries to allow for better trading conditions.

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11

exchange rate

the price of one country’s currency in terms of another country’s currency. (1 US dollar = 0.94 Euro)

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12

trade deficit

negative balance of trade (imports greater than exports)

<p>negative balance of trade (imports greater than exports) </p>
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13

trade surplus

positive balance of trade (exports greater than imports)

<p>positive balance of trade (exports greater than imports)</p>
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14

balance of trade

difference between a country’s exports and its imports.

<p>difference between a country’s exports and its imports.</p>
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15

globalization

the spread of the flow of financial products, goods, technology, information, and jobs across national borders and cultures.

<p>the spread of the flow of financial products, goods, technology, information, and jobs across national borders and cultures.</p>
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16

outsourcing

to receive goods/services from an outside or foreign supplier.

<p>to receive goods/services from an outside or foreign supplier.  </p>
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17

European Union

a political and economic alliance of 27 countries located primarily in Europe

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18

OPEC

an intergovernmental organization controlling most of the world’s oil supply

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19
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