International Trade and Money summary Questions and Answers 2023

Trade - -The exhcange of goods and services between countries . -Absolute advantage - -A situation in which one country can produce more of a product than another even if both have the same resources. -Comparative advantage - -A situation in which one country can produce a product at a lower o...

Balance of Payments Accounts - -summary of the country's transactions with other countries -Current Account - -balance of payments on goods and services plus net international transfer payments and factor income -Balance of Payments on Goods and Services - -the difference between exports and ...

Balance of payments accounts - -A summary of the country's transactions with other countries. -Factor Income - -Payments for the use of factors of production owned by residents of other country's -International Transfers - -Funds sent by residents of one country to residents of another -F...

The difference between the money values of a country's visible imports and exports - -The balance of trade -The difference between what a country pays for all it imports and receives for all its exports - -The balance of payments -Imposing trade barriers in order to restrict imports - -Protec...

How do nations interact in trade? - -Goods & services, flows of money, and investment -What kind of trend do US imports & exports as shares of GDP have? - -Upward -How does the US have money to pay for greater imports than exports? - -Foreigners' investments in the US economy -Gains From T...

When does trading occur? - -When consumers in the US buy goods from other nations (imports) and businesses in the US sell goods to other nations (exports). -What are the benefits of world trade? - -• Jobs • Profits • Variety of goods and services. -What affects the importing and export...

balance of payment accounts - -Summary of a country's transactions with other countries. Includes current and financial accounts. -current account - -The balance of payments on goods and services plus net international transfer payments (sent by individual people to others) and factor income (mo...

-Difference between outsourcing and offshoring - -Outsourcing: Outsourcing is a practice used by different companies to reduce costs by transferring portions of work to outside suppliers rather than completing it internally. Source: Investopedia Foreign Outsourcing: - This is the same thing a...

Economic Liberalism - -approach that generally shares the assumption of anarchy but does not see this condition as precluding extensive. Cooperation to realize common gains from economic exchanges. Emphasizes absolute over relative gains and in practice, a commitment to free trade, free capital flow...

Ad valorem tax - -Indirect tax where a given percentage is added to price of a good or service -Administrative barriers - -Administrative requirements that prevent or reduce amount of imports -Aggregate demand - -Total amount of spending of spending in the economy, made up of household consump...

Comparative Advantage - -the ability to produce a good at a lower opportunity cost than another producer -Terms of Trade - -The amount of an exported good that must given up to obtain an imported good - measured by the ratio of a country's export prices to its import prices. -Protective Tarif...