Chapter 16- Achieving Economic Stability (Misery Index (also called the…
Chapter 16- Achieving Economic Stability
also called the discomfort index
not an official government statistic
used during periods of high inflation and unemployment
Advantages and Disadvantages of International Trade
getting products from other countries that cannot be produced in your own country.
Tariff- a tax placed on imports to increase their price in the domestic market.
Quota- a limit placed on the quantities of a product that can be imported.
Globalization vs. Protectionism
a country cannot obtain the benefits of the products of other countries if trade barriers aren't in place.
protectionist argue that a country could become independent through trade barriers
trade barriers protect growing industries from foreign competition
Collectivization vs. Privatization
Used in the Soviet Union
many have control over production and distruction
few have control over production and distruction
officialized in 1993
proposed by Bush and concluded by Clinton
benefits protectionists and free traders
Composed of 28 European States
political and economic union
covers 7.3% of world population
used when countries trade
opportunity cost is lower
only one country can have a comparative advantage in trade when trading with one other country