Trade Terms and Linkages
Honors Economics
1. Absolute Advantage
2. Comparative Advantage
3. Mercantilism
4. Neo-mercantilism
5. Favorable balance of trade
6. Unfavorable balance of trade
7. Trade deficit
8. Balance of Payments
9. Free Trade
 Protective Tariff
 Revenue Tariff
 Embargo
 Quota
10.Government Subsidy
11.Infant Industries
12.GATT
13.EC
14.EFTA
15.NAFTA
16.Strong and weak dollar
Name:___________________________
Trade Linkages
For each of the following, try to come up with the connection between the ideas, or the effects of one on the
other.
1. French government subsidies to French soy bean growers and gross Illinois exports
2. Strong US dollar and the number of BMW’s sold in the US
3. Weak US dollar and the sale of French wine in the US
4. Strengthening US dollar and stock price of a large US export company
5. Rising US inflation and the value of the US dollar in Germany
6. Rising US federal government budget deficit and US interest rates
7. Rising US federal budget deficit and the happiness of developing companies
8. Rising US federal budget deficit and the US trade deficit
9. Why should the US spend money on other countries when we have people in the US that need money?