ITB Chapter 3

_____________________ The opportunity of giving up the second-best choice when making a decision.

• Opportunity Cost

• Absolute advantage

• Comparative advantage

• Competitive advantage

The benefit a country has in a given industry when it can produce more of a product than other nations using the same amount of resources.

• Advantage in Sales

• Comparative advantage

• Absolute advantage

• Opportunity Cost

A Basic measure of the difference in value between a nation's exports and imports including both goods and services

• budget

• surplus

• surplus and deficit

• balance of trade

Exchange rates: if $1.00 dollar = 1.20 euros then who has more buying power?

• The Dollar

• The Euro

• The Pound

• The Yen

A measure of the total flow of money into or out of the economy.

• Balance of power

• Balance of Trade

• Balance of Payments

• Balance of exchange rates

A measurement of the value of one nation's currency relative to the currency of other nations.

• Exchange rate

• Exchange surplus

• blance of payments

• trade rates

international trade that involves the barter of products for products rather than for currency.

• Forign Outsourcing

• Importing

• Countertrade

• marketing

buying products domestically that have been produced or grown by foreign nations.

• Trade

• Exporting

• Importing

• trading and exporting

Selling products in foreign nations that have been produced or grown domestically.

• barter

• exporting

• importing

• trade

Are taxes levied against imports

• Tariffs

• quotes

• embargo

• Cargo Tax