Unit 1

The purchase, sale, or exchange of goods and services across national borders is called

A trade theory which holds that a government can improve the economic well-being of the country by encouraging exports and stifling imports to accumulate wealth in the form of precious metals

_____________ is the condition that results when the value of a nation's exports is greater than the value of imports.

A condition that results when the value of a country's imports is greater than the value of its exports is called_____________.

Sending goods to another country for sale or trade is called a_____________.

A trade theory which holds that nations can increase their economic well-being by specialising in goods that they can produce more efficiently than anyone else is called_____________.

Bringing in goods from another country for sale or trade is called_____________.

_____________ is a trade theory which holds that nations should produce those goods for which they have the greatest relative advantage.

A trade theory which holds that nations will produce and export products that use large amounts of production factors that they have in abundance and will import products requiring a large amount of production factors that they lack.

Financial assistance to domestic producers in the form of cash payments, low-interest loans, tax breaks, product price supports, or some other form is called_____________.