Goods whose design and production require much skilled labor.

A line that shows the different combinations of two products that an

economy is able to obtain when it specializes in the production of one

product and trades it to obtain the other product.

A tax imposed by a nation on an imported good.

The use of trade barriers to reduce the risk inherent in product

development by domestic firms, particularly that involving advanced

technology.

A product requiring a relatively large amount of land to be produced.

The extra output that trading partners obtain through specialization of

production and exchange of goods and services.

A tariff designed to produce income for the federal government.

The sale of products below cost in a foreign country or below the prices

charged at home.

A product that requires a large amount of human made resources in

order to produce.

The international market price of a good or service, determined by world

demand and supply.

A tariff designed to shield domestic producers of a good or service from

the competition of foreign producers.

World Trade Organization

(WTO)

An organization of 145 nations that oversees the provisions of the

current world trade agreement, resolves trade disputes stemming from it, and holds forums for further rounds of trade negotiations.

An equality showing the number of units of two products that can be

produced with the same resources; the cost ratio 1 corn= 3 olives

shows that the resources required to produce 3 units of olives must be

shifted to corn production to produce a unit of corn.

The price of a good or service within a country, determined by domestic

demand and supply.

A limit imposed by a nation on the quantity of a good that may be

imported during some period of time.

The total output will be greatest when each good is produced by the

nation that has the lowest domestic opportunity cost for that good.

An upward sloping curve that shows the amount of a product that

domestic firms will export at each world price that is above the domestic

price.

Nontariff Barrier

(NTB)

All barriers other than protective tariffs that nations erect to impede

international trade, including import quotas, licensing requirements,

unreasonable product quality standards, unnecessary bureaucratic detail

in customs procedures and so on.

A down sloping curve showing the amount of a product than an

economy will import at each world price below the domestic price.

Voluntary Export Restriction

(VER)

Voluntary limitations by countries or firms of their exports to a particular

foreign nation to avoid enactment of formal trade barriers by that

nation.

The rate at which units of one product can be exchanged for units of

another prodcut; the price of a good or service; the amount of one good

or service that must be given up to obtain 1 unit of another good or

service.

The price in a competitive market at which the quantity demanded and

the quantity supplied are equal. No shortage nor surplus.