Global Economics Test Review

When a country can produce more of a product than another country

• Specialization

• Absolute advantage

• Comparative advantage

• Opportunity cost

When a country can produce a product at a lower opportunity cost

• Specialization

• Absolute advantage

• Comparative advantage

• Opportunity cost

The sacrifice of the next best alternative

• Specialization

• Absolute advantage

• Comparative advantage

• Opportunity cost

A tax on imported goods

• Tariff

• World Trade Organization (WTO)

• Free traders

• Protectionists

People who prefer no, or few, trade restrictions

• Tariff

• World Trade Organization (WTO)

• Free traders

• Protectionists

People who favor trade barriers to protect domestic industries

• Tariff

• World Trade Organization (WTO)

• Free traders

• Protectionists

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

• Foreign exchange rate

• Fixed exchange rate

• Floating exchange rate

• Quota

A government order that restricts or prohibits trade completely.

• Globalization

• Global Interdependence

• Embargo

• Tariffs

When countries sell their resources, materials, and goods they produce to another country.

• Embargo

• Inflation

• Imports

• Exports

When countries buy resources, materials, and goods from another country.

• Embargo

• Inflation

• Imports

• Exports