Chapter 11: International Trade of Goods

Specialization

________ and trade allows both countries to move beyond the confines of their production possibilities.

tariff

A(n) ________ is a tax on imported goods or services.

Exports

________: Goods or services produced domestically but sold abroad.

Protectionism

________ is the limiting of free trade between countries by using tariffs, quotas, or other regulations.

Imports of goods

________ and services generate an increase in supply and lower prices for consumers but at the same time cause a decrease in quantity supplied and lower prices for domestic producers.

Imports

________: Goods or services produced abroad but sold domestically.

Trade surplus

________ is when a countrys level of exports exceeds its level it imports.

quota

A(n) ________ is a restriction on the quantity of a good that can be imported into a country.

Rapid increases

________ in technology have decreased the costs of transporting goods and services and have resulted in increased international trade and globalization in the world.

WTO

The ________ acts as the official arbiter of trade disputes between countries and is the negotiator and administrator of WTO trade agreements ratified by its members.

International trade

________ can generate costs for workers and firms who do not have comparative advantage in production.