If a nation artificially lowers the value of its currency, it can gain competitive trade advantages. True

When the dollar is strong, goods and services imported into the U.S. cost less. True

A currency, like a product, has a price. True

Occurs when a country sells more than it buys.

Goods and services grown or made in one country then sold in world markets.

The concept that the cost of producing something declines as the number of units produced rises.

A policy of limited government trade restrictions.

An international organization that mediates trade disputes among member nations and establishes fair trade practices.

The U.S. is the world’s largest importer of manufactured goods.

More than half of the world’s imports are intermediate goods that are used to produce other goods.

Any action taken to control or limit imports.

The benefit to the party that has the lower opportunity cost in pursuing a given course of action.

Globalization refers to the ever growing interconnection of economies among all the countries of the world.

Globalization decreases the flow of labor.

A ______is a business that is controlled by another business.

______occurs when companies move sections of their business to other companies or subsidiaries.

The value of a nation’s currency can be affected by changes in interest rates.

Moving sections of a business to another country. Occurs when a country buys more products than it sells.

Goods and services that come into a country from other countries.

In international trade, the balance of payments refers to ______.

The agency created to mediate trade disputes among nations and establish trade practices that are acceptable and fair to all is the ______.

A(n) ______is a tax on imports that makes them more expensive to consumers.

The sale of products in foreign markets at low prices in order to eliminate competition is considered a fair trade practice by the U.S.

Globalization refers to the ______.