4.2 Flashcard Quiz 133-143

Measures the price of one nation's currency in terms of another nation's currency.

• ASEAN

• NAFTA

• Exchange rate

• Subsidy

Payments that the government makes to a local supplier to reduce the production costs for the supplier.

• Subsidy

• Tariff

• Embargo

• Quota

Free trade agreements among countries in a region.

• Standards

• Depreciate

• Trade blocs

• Arguments against free trade

Trade bloc that allows Canada, Mexico and the United States to trade tariff-free with each other.

• Avengers

• ASEAN

• NAFTA

• Appreciate

Trade bloc that allows 27 European countries to all trade tariff-free with each other.

• European Union

• Central American Union

• Asian Fiscal Trade Policy

• Atlanta Lawn Tennis Association

Association of Southeast Asian Nations Trade bloc that allows Southeast Asian countries to trade tariff-free with each other.

• ASEAN

• NAFTA

• TARIFF

• POTUS

Increases competition, which reduces costs for buyers and improves quality of goods. Allows domestic goods to be sold world-wide. Allows a country to exercise comparative advantage through specialization.

• Subsidy

• Arguments for free trade

• Trade blocs

• Arguments against free trade

Protect infant industries from competition – Protect national security – Protect domestic employment – Protect workers in developing countries – Protect the environment.

• Arguments for free trade

• Exchange rate

• Trade surplus

• Arguments against free trade

Measures the price of one nation's currency in terms of another nation's currency.

• NAFTA

• Exchange rate

• Trade bloc

• Subsidy

To strengthen or increase the purchasing power of a country's currency.

• Tariff

• Depreciate

• Quota

• Appreciate