International Trade and Economics Flashcard

Front

What is an exchange rate?

Back

The price of one nation's currency in terms of another's

Front

If the US $ were to appreciate in relation to the Euro, what effect would this have? Options: US consumers can buy more English goods and services for fewer $$, European tourists to the US will spend more $$, US consumers can buy more European goods and services for fewer $$, European consumers would have more purchasing power in US

Back

US consumers can buy more European goods and services for fewer $$

Front

If the US is currently experiencing inflation, what will happen to the value of its currency?

Back

It will likely depreciate

Front

What might cause the value of the U.S. dollar to appreciate in relationship to the euro? Options: Increases in the U.S. money supply, Increased demand for U.S. products in Europe., Increased demand for European products in the U.S., High rates of inflation in the U.S.

Back

Increased demand for U.S. products in Europe.

Front

One advantage of a weak dollar is that… ?

Back

American exports increase.

Front

What must first take place in order for one country to trade with another?

Back

Exchange currency for the currency accepted by the trading country.

Front

What is an exchange rate?

Back

The price of one nation's currency in terms of another's.

Front

What is a decrease in the value of a currency?

Back

Depreciation

Front

A depreciation of a country's currency means for this country's residents that imported goods are

Back

More expensive

Front

What is a tariff?

Back

A tax placed on imports.