Chapter 16

Misery Index

Advantages and Disadvantages of International Trade

Collectivization vs Privatization

Globalization vs Protectionism

Operates on an international scale.

Tariffs and Balance of payments.

Globalization is free trade.

Foreign trade leads to specialisation and encourages production of different goods in different countries.

The underdeveloped countries have to depend upon the developed ones for their economic development.

helps each country to make optimum use of its natural resources

Creates the sum of monthly inflation .

Measures consumer suffering during high points of inflation.

Unemployment rates-Sum of unemployment rates.

Soviet Union is an example of collectivization.

Privatization is where a company is mad enough private instead of public.

Collectivization is consolidation on individual households.

European Union

Economic union made up of 28 states in Europe.

Maintains common policy's on trade.

Believes in the free movement of goods people or services.

NAFTA

It's an agreement between the USA,Mexico, Canada.

Eliminated trade barriers between those countries.

Created a trilateral trade bloc.

Comparative Advantage

A person has a comparative advantage at producing something if he can produce it at lower cost than anyone else.

someone can be completely unskilled at doing something, yet still have a comparative advantage at doing it.

the ability of an individual or group to carry out a particular economic activity.