_____ are good and services produced domestically but sold to other countries. ______ are goods and services bought domestically but produced in other countries. ______ are taxes imposed by a government on imports of a good into a country
is the ability of an individual, a firm, or a country to produce a good or service at a lower opportunity cost than competitors
climate and natural resources, relative abundance of labor and capital, technology, external economies
not all goods and services are traded internationally, production of most good involves increasing opportunity costs, and tastes for products differ.

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______ is a situation in which a country does not trade with other countries. The _____ is the ratio at which a country can trade its exports for imports from other countries
By trading countries are able to consume more than they could without trade. this outcome is possible because
world production of both goods increases after trade, shifting production to the more efficient country- the one with the comparative advantage- increases total production, inefficiencies in resource allocation are reduced
The quota is unilaterally imposed by one nation on the other while the VER is the result of negotiations between nations
Some politicains argue that eliminating U.S. tariffs and quotas would help the U.S. economy only if other countries eliminated their tariffs and quotas in exchange
This statement is false; the U.S. economy would gain from the elimination of tariffs and quotas even if other countries do not reduce their tariffs and quotas
protectionism is the use of trade barriers to shield domestic firms from foreign competition. protectionism is usually justified on the basis of sever arguments which include:
Some critics of the WTO support globalization in principle but believe that the WTO favors the interests of the high-income countries at the expense of the Low-income countries, some opponents desire to erect trade barriers to protect domestic firms from foreign competition, some opponents are specifically against the globalization process that began in the 1980s and became widespread int he the 1990s
Is an international organization that oversees international trade agreements, replaced the General Agreement on Tariffs and Trade (GATT) in January 1995, generally aids in negotiating trade agreements that include not only goods but also services and intellectual property
The sugar quota in the United States creates winners and losers. The winners are_____________, and the losers are _____________.
While exports and imports have been steadily rising as a fraction of GDP, not all sectors of theU.S. economy have been affected equally by international trade.
You and your neighbor pick apples and cherries. If you can pick apples at a lower opportunity costthan your neighbor can, which of the following is true?
a. You have a comparative advantage in picking apples.b. Your neighbor is better off specializing in picking cherries.c. You can trade some of your apples for some of your neighbor"s cherries, and both of you will endup with more of both fruit.
the ability of an individual, firm, or country to produce more of a good or service thancompetitors using the same amount of resources
Countries gain from specializing in producing goods in which they have a(n)___________ advantage and trading for goods in which other countries have a(n) _____________advantage.
a. because not all goods are traded internationallyb. because production of most goods involves increasing opportunity costsc. because tastes for products differ
an agreement negotiated between two countries that places a numerical limit on the quantity of agood that can be imported by one country from the other country
In the United States and Japan, the cost of saving jobs through trade barriers like tariffs and quotas is
Which of the following groups of people are significant sources of opposition to the World TradeOrganization (WTO)?
a. Tariffs and quotas save jobs.b. Tariffs and quotas protect national security.c. Tariffs and quotas protect infant industries.

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The WTO determines that dumping has occurred if a product is exported for a lower price than itsells for in the home market.
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