KEY CONCEPTS

Match each of the terms on the left with its definition on the right. Click on the term first and then click on the matching definition. As you match them correctly they will move to the bottom of the activity.

Question

autarky
imports
exports
absolute advantage
comparative advantage
terms of trade
tariff
quota
infant industry
dumping
A tax on imported products. When a country taxes imported products, it drives a wedge between the product’s domestic price and its price on the world market.
The ratio of the price of exported goods to the price of imported goods (Px/Pm).
Goods and services that are purchased from abroad.
One country has a lower opportunity cost of producing a good than another country.
Goods and services that are sold abroad.
A government-set limit on the quantity of imports into a country.
A country that does not engage in international trade, also known as a closed economy.
Selling goods abroad at lower prices than in home markets, and often below cost.
An industry so underdeveloped that protection is needed for it to become competitive on the world stage or to ensure its survival.
One country can produce more of a good than another country.
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