evie flashcardiz part 3

Front

What is commodity dependence?

Back

Economic reliance on exports of agricultural and mineral raw materials

Front

What does comparative advantage refer to?

Back

The ability to produce a good or service at a lower opportunity cost than competitors

Front

What is a tariff?

Back

A tax on imported goods

Front

What is an import quota?

Back

A direct restriction on the quantity of a good that can be imported.

Front

What are trading blocs?

Back

Groups of countries agreeing to increase trade by lowering trade barriers

Front

What is vertical integration?

Back

The combination in one company of two or more stages of production.

Front

What is horizontal integration?

Back

Absorption into a single firm of several firms involved in the same level of production