Chapter 7 - Global Economics

This is a product sent to a foreign country for sale

This is a product brought in for sale form a foreign country

An 18th century Scottish economist said that specializing in one good rather than several sparks trade between nations creating peace.

• Jamie Fraser

• Adam Smith

• Samuel Birr

• Edward Jones

The cost of one currency expressed in terms of another currency

Difference between value of a nation's exports and it's imports

Negative balance of trade occurs if country spends more on imports

An accounting of countries and all financial transactions that involve other financial dealings

Tax on imports

Protective Tariffs are intended simply as a source of government income

• True

• False

Protective Tariffs are intended to add to the consumer price to discourage buying out to the country

• True

• False