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Flashcards in Civics Deck (18)
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Import

To bring goods in from another country

1

Export

To sell goods to other nations

2

Comparative advantage

The ability to produce something at a lower opportunity cost than another country can.

3

Protectionism

Doing things to make goods at home cheaper than imported goods.

4

Tariff

A tax on imports,

5

Quota

Limits the amount of an item allowed to enter a country.

6

Subsidy

A payment or benefit the government gives to help a domestic producer

7

Free trade

Policy in which countries join with key trading partners to lower trade barriers with the intention of increasing trade .

8

Free trade zones

When one country tries try to increase trade, they join with trading partners and set up areas of free trade.

9

Balance of trade

The difference between the value of a nations imports and the value of its exports.

10

Exchange rate

The value of one currency when exchanged, or traded, for another.

11

Privatization

The change from having sate owned businesses and farms to ones owned by private citizens.

12

Developed countries

Countries that have a high standard of living and a lot of industry.

13

Developing countries

Countries that are not very productive and have low GDP per capita

14

Mixed economy

An economy that combines part of a market economy with parts of a command economy.

15

Market economy

Individuals decide what to produce, how to produce, and for whom to produce. The people own the factors of production.

16

Command economy

Government owns the factors of production.

34

GDP per capita

The total value of goods produced in a country, divided by the countries population.