Unit 2 ESP231

Front

The purchase, sale or exchange of goods and services across national borders is call _______________

Back

International trade

Front

1. A trade theory which holds that a government can improve the economic well-being of the country by encouraging exports and stifling imports to accumulate wealth in the form of precious metals is __________

Back

Mercantilism

Front

1. _____________is the condition that results when the value of a nation's exports is greater than the value of its imports.

Back

Trade surplus

Front

A condition that results when the value of a country's imports is greater than the value of its exports is______________

Back

Trade deficit

Front

1. Sending goods to another country for sale or trade is called ____________

Back

Exporting

Front

1. A trade theory which holds that nations can increase their economic well-being by specialising in goods that they can produce more efficiently than anyone else is called________________

Back

Theory of absolute advantage

Front

1. Bringing in goods from another country for sale or trade is called____________

Back

Importing

Front

1. ____________is a trade theory which holds that nations should produce those goods for which they have the greatest relative advantage.

Back

Theory of comparative advantage

Front

1. A trade theory which holds that nations will produce and export products that use large amounts of production factors that they have in abundance and will import products requiring a large amount of production factors that they lack is ________________

Back

Factor endowment theory

Front

1. Financial assistance to domestic producers in the form of cash payments, low-interest loans, tax breaks, product price supports, or some other form is called_______________

Back

Subsidy