Name:___________________________
Vocabulary: International Trade and Developing Countries
Word
Comparative advantage
Absolute advantage
Tariff
Quota
Protectionists
Foreign exchange
Subsistence
Book definition
In own words
Picture
Work Sheet: International Trade
468 1. On average, Americans spend about $______ per year on imported products.
469 2. Absolute Advantage: ____________________________________________________________________
470 3. Comparative advantage: _________________________________________________________________
472 4. Tariffs: ______________________________________________________________________________
472 5. Protective tariffs: tariffs high enough to protect less efficient _________________ ____________________.
473 6. Revenue tariffs: designed to _____________________ ______________________ for the government.
473 7. Quotas: normally lead to (higher/lower) ______________________________prices.
474 8. Protectionists: ________________________________________________________________________
A. Infant industries Argument
B. Trade deficit
C. Balance of payments
D. National defense argument
E. Smoot-Hawley Tariff
F. Most Favored nation clause
G. GATT
H. NAFTA
476 ___9. The difference between the money paid to and received from other nations.
474 ___10. Produce critical supplies necessary for wartime here in the U.S.
479 ___11. Attempt to liberalize free trade between Canada, Mexico, and the U.S.
484 ___12. More imports are coming in than exports going out.
477 ___13. Extended tariff concessions & worked to do away with import quotas(over 100
nations).
474 ___14. New or emerging industries should be protected from foreign competition.
___15. One of the highest (65%) tariffs in history(1930s).
477 ___16. Country with this agreement received same tariff reductions negotiated with other
countries.
482 17. Foreign exchange rate: ____________________________________________________________________
482 18. A TV sells for Y52,500 in Tokyo. How much would it cost in US dollars if the exchange rate was Y110=$1
(52,500/110= $____________________________)
482 19. A clock in London sells for 200. How much would it cost in US dollars if the exchange rate was 1.50-$1?
(200/1.50=_________________)
483 20. Flexible exchange rate: forces of _________ and _________ establish the value of currencies.
483 21. (figure 17.5b) After an increase in demand for German goods, what was the dollar price of the German mark?
_________________________
483 22. When the dollar gets weaker, Americans have to pay (less/more) _____ for imports
483 23. A strong dollar could increase a trade deficit because imports are (cheaper/ more expensive).