International Trade Review

Flashcards covering key vocabulary and concepts from Chapter 19 on International Trade.

International Trade

The exchange of goods and services between countries.

Tariffs

A tax imposed on imported goods and services.

Quotas

Limits on the quantity of imports that can enter a country.

Trade Balance

The difference between a country's exports and imports.

Comparative Advantage

The ability to produce a good at a lower opportunity cost than another producer.

Deadweight Loss

The loss in total surplus caused by market inefficiency or trade restrictions.

Globalization

The process by which businesses or other organizations develop international influence or start operating on an international scale.

Export Surplus

When a country's exports exceed its imports.

Import Surge

A sudden and significant increase in the volume of imports.

Gains from Trade

The increase in total welfare from trade due to specialization and comparative advantage.