Key Terms

Question

Imports
Exports
Globalization
Autarky
Factor intensity
Heckscher–Ohlin model
Domestic demand curve
Domestic supply curve
World price
Exporting industries
Import-competing industries
Free trade
Trade protection
Protection
Tariff
Import quota
Offshore outsourcing
the difference in the ratio of factors used to produce a good in various industries. For example, oil refining is capital-intensive compared to clothing manufacture because oil refiners use a higher ratio of capital to labor than do clothing producers.
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.
a situation in which a country does not trade with other countries.
a supply curve that shows how the quantity of a good supplied by domestic producers depends on the price of that good.
industries that produce goods or services that are sold abroad.
a legal limit on the quantity of a good that can be imported.
goods and services sold to other countries.
the price at which a good can be bought or sold abroad.
a demand curve that shows how the quantity of a good demanded by domestic consumers depends on the price of that good.
policies that limit imports; an alternative term for trade protection.
the phenomenom of growing economic linkages among countries.
policies that limit imports; also known simply as protection.
a tax levied on imports.
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.
the practice in which businesses hire people in another country to perform various tasks.
goods and services purchased from other countries.
industries that produce goods or services that are also imported.

Imports

Exports

Globalization

Autarky

Factor intensity

Heckscher–Ohlin model

Domestic demand curve

Domestic supply curve

World price

Exporting industries

Import-competing industries

Free trade

Trade protection

Protection

Tariff

Import quota

Offshore outsourcing