International Economics

To plan for his business trip to Denmark, Tony needs to know how many Danish krones his US dollars are worth. Tony needs to be aware of

• the exchange rate.

• any currency embargoes.

• international tariffs.

• whether or not the US dollar currently enjoys a comparative advantage in trade.

The ability to produce more of a given product using a given amount of a resource.

• Absolute Advantage

• Comparative Advantage

• Positive Advantage

• Negative Advantage

The ability to produce a product most efficiently given all the other products that could be produced.

• Absolute Advantage

• Comparative Advantage

• Positive Advantage

• Negative Advantage

A situation in which a nation imports more goods and services than it exports.

• Balance of Trade

• Balance of Payments

• Trade Surplus

• Trade Deficit

A situation in which a nation exports more goods and services than it imports.

• Balance of Payments

• Trade Surplus

• Trade Deficit

• Balance of Trade

A tax on imported goods.

• Embargo

• Subsidy

• Tariff

• Quota

The use of trade barriers to protect a nation’s industries from foreign competition

• Balance of trade
• NAFTA
• Quotas
• Protectionism 

An increase in the value of a currency

• apprecation
• depreciation
• quota
• subsidy

According to the law of comparative advantage, a country should 

• Specialize and export goods with the lowest production cost
• Specialize and export goods with the lowest opportunity cost
• Specialize and export goods with the lowest average cost
• Specialize and export goods with the highest opportunity cost

the process of increased connection between countries. It is demonstrated through economics, politics and culture.

• Exchange

• Globalization

• Mercantilism

• Ethnocentric