International Trade and Money summary Questions and Answers 2023

1. Outline the main characteristics of the mercantilist view of international trade ; - -• Export as much as possible, import as little as possible • Mercantilism is a zero-sum game = not everyone can benefit • Someone's export = else's import • Japan and China often accused of neo-Merc...

international trade - -buying and selling goods across borders -absolute advantage - -occurs when a country can produce a good or service utilizing less resources than another country -comparative advantage - -occurs when a country can produce a good or service at a lower opportunity cost than...

1. Outline the main characteristics of the mercantilist view of international trade ; - -• Export as much as possible, import as little as possible • Mercantilism is a zero-sum game = not everyone can benefit o Someone's export = else's import • Japan and China often accused of neo-Mercan...

International Economics - -The effects upon economic activity of international differences in productive resources and consumer preferences and the institutions that affect them. Explains the patterns and consequences of transactions and interactions between the inhabitants of different countries,...

Comparative Advantage - -The ability of a country to produce a g/s at a lower opportunity cost than competitors -Gains from trade - -The net benefits from entering into voluntary trade. Increases when countries specialize in g/s they have CA in -Autarky - -When a country does not trade with ot...

trade surplus - -exporting more than is imported -trade deficit - -exporting less than is imported -net exports - -exports-imports -balance of trade - -goods and services traded -balance of payments - -summary of a country's international trade -within a given year -in domestic count...

absolute advantage - -The ability to produce a good using fewer inputs than another producer -comparative advantage - -The ability of a country to produce a good at a lower cost than another country can. -balance of payments - -A summary record of a country's international economic transactio...

Top 3 countries U.S. has trade deficit with in 2019: - -1. China 2. Mexico 3. Japan -The gains from international trade are closely related to: - -how much the autarky price differs from the international price (i.e. terms of trade) -International Trade True: - -potentially, a country can ha...

Gains of international trade - -Lower prices - Goods and services are sold at cheaper prices. E.g raw materials Greater Choice - Consumers have a greater choice and producers have a wider market to sell to. Differences in resources - Some countries don't have the resources other countries do....

inflation - -A persistent increase in the average price level in the economy. -Unemployment - -People of working age who are without work, and are actively seeking employment -Structural Unemployment - -natural unemployment- change in the structure of the economy-> domestic businesses go ou...