Unit 5 LA A & B Summary

Currency ----------- is when a country reduces the value of its' currency to make exports cheaper.

A government order that restricts commerce with another country is called -------

8.5% tariff means that

• the price reduces by 8.5%

• an extra 8.5% is added to the price

• the business has to pay 8.5%

The theory or action of shielding a country’s industries from foreign competition is called ​ (a)  

• protectionism
• liberalisation

A limited quantity of a product that  can imported into a country is called

• Protectionism

• Tariff

• Quotas

• Subsidy

Match the definitions to the term

• Trading Bloc

• A pact between two or more nations to reduce barriers to imports and exports among them

• WTO

• A trading bloc that allows free movement of people

• Common market

• An organisation that promotes free trade

• Free trade agreement

• Two or more countries that agree to trade together

• Customs Union

• A trading bloc with a common external tariff

are used to encourage production in the local economy

Trade barriers are used to ​ (a)   ​ (b)   and​ (c)   industries.

• protect
• infant
• domestic
• competition
• local
• develop
• large

Ad Valorem means

A strong currency means ​ (a)   are cheaper​ (b)   are expensive.

• imports
• exports
• goods
• services
• products