Nation X Is Taking Actions That Nation Y Finds Objectionable. What Cour Of Actions, Short Of War, Could Nation Y Do To Impact Nation X'S Economy? What Is The Difference Between Comparative And Absolute Advantage? Give An Example Of Comparative Advantage. Give An Example Of Absolute Advantage. Exports - Imports = Nations Depend Upon Each Other For Necessities. Give An Example Of An Import The Us Requires And From Whom It Imports It From. Do The Same With Exports. What Impact Does A Tariff Have On The Price Of A Good? What Are The Advantages And Disadvantages Of Nafta? What Tools Could We Put In Place To Protect Domestic Manufacturing? Why Might Businesses Outsource Jobs From The U.S. To The Third World? Terms To Define: Import Export Tariff Protectionism Nafta Free Trade Balance Of Trade Absolute Advantage Comparative Advantage Embargo Domestic Business Foreign Business Trade Barrier

Notes on Economic Concepts and Actions

1. Actions by Nation Y:

   • Economic sanctions

   • Trade restrictions

   • Diplomatic pressure

2. Comparative vs. Absolute Advantage:

   • Comparative Advantage: Ability to produce a good at a lower opportunity cost.

     Example: Country A can produce wine more efficiently than cheese, while Country B can produce cheese more efficiently than wine.

   • Absolute Advantage: Ability to produce more of a good with the same resources.

     Example: Country A can produce 10 cars per hour, while Country B can produce 5.

3. Trade Basics:

   • Exports - Imports = Balance of Trade

   • Example of Import: Oil from Canada

   • Example of Export: Technology from the U.S. to Europe

4. Tariffs:

   • Increase the price of imported goods, protecting domestic industries.

5. NAFTA:

   • Advantages: Increased trade, economic growth.

   • Disadvantages: Job losses in certain sectors, environmental concerns.

6. Protecting Domestic Manufacturing:

   • Tariffs, subsidies, and regulations.

7. Outsourcing Reasons:

   • Lower labor costs, access to skilled labor, and increased efficiency.

Terms to Define:

• Import: Goods brought into a country.

• Export: Goods sent out of a country.

• Tariff: Tax on imports.

• Protectionism: Shielding domestic industries from foreign competition.

• NAFTA: North American Free Trade Agreement.

• Free Trade: Trade without tariffs or restrictions.

• Balance of Trade: Difference between exports and imports.

• Absolute Advantage: Producing more with the same resources.

• Comparative Advantage: Lower opportunity cost in production.

• Embargo: Official ban on trade.

• Domestic Business: Business operating within a country.

• Foreign Business: Business operating outside a country.

• Trade Barrier: Restrictions to trade between countries.