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.
Autarky International trade agreements Free trade Domestic supply curve Tariff North American Free Trade Agreement (NAFTA) Imports Protection Import-competing industries Globalization Factor intensity Trade protection Heckscher–Ohlin model Ricardian model of international trade Deadweight loss Exporting industries World price Import quota Exports World Trade Organization (WTO) Domestic demand curve Offshore outsourcing | policies that limit imports; also known simply as protection. the loss in total surplus that occurs whenever an action or a policy reduces the quantity transacted below the efficient market equilibrium quantity. the practice of businesses hiring people in another country to perform various tasks. the phenomenon of growing economic linkages among countries. a trade agreement among Canada, the United States, and Mexico. treaties by which countries agree to lower trade protections against one another. a model of international trade in which a country has a comparative advantage in a good whose production is intensive in the factors that are abundantly available in that country. goods and services purchased from other countries. the difference in the ratio of factors used to produce a good in various industries. For example, oil refining is capital-intensive compared to auto seat production because oil refiners use a higher ratio of capital to labour than do producers of auto seats. the price at which a good can be bought or sold abroad. an international organization of member countries that oversees international trade agreements and rules on disputes between countries over those agreements. trade that is unregulated by government tariffs or other artificial barriers; the levels of exports and imports occur naturally, as a result of supply and demand. goods and services sold to other countries. industries that produce goods or services that are also imported. policies that limit imports; an alternative term for trade protection. a model that analyzes international trade under the assumption that opportunity costs are constant. a situation in which a country does not trade with other countries. a demand curve that shows how the quantity of a good demanded by domestic consumers depends on the price of that good. industries that produce goods or services that are sold abroad. a supply curve that shows how the quantity of a good supplied by domestic producers depends on the price of that good. a tax levied on imports. a legal limit on the quantity of a good that can be imported. |