Campbell R. McConnell,
University of Nebraska, Lincoln
Stanley L. Brue,
Pacific Lutheran University
Thomas P. Barbiero,
Ryerson University
| Capital-intensive goods | Products that require a relatively large amount of capital to produce.
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| Cost ratio | An equality showing the number of units of two products that can be produced with the same resources; the cost ratio 1 corn = 3 olives shows that the resources required to produce 3 units of olives must be shifted to corn production to produce a unit of corn.
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| Domestic price | The price of a good or service within a country, determined by domestic demand and supply.
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| Dumping | The sale of products in a foreign country below the prices charged at home.
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| Equilibrium world price | A price determined by the intersection of exporting nations' supply of a product and importing nations' demand for the same product.
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| Export supply curve | An upsloping curve that shows the amount of a product domestic firms will export at each world price above the domestic price.
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| Gains from trade | The extra output that trading partners obtain through specialization of production and exchange of goods and services.
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| Import demand curve | A downsloping curve that shows the amount of a product that an economy will import at each world price below the domestic price.
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| Import quota | A limit imposed by a nation on the quantity (or total value) of a good that may be imported during some period of time.
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| Labour-intensive goods | Products that require a relatively large amount of labour to produce.
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| Land-intensive goods | Products that require a relatively large amount of land to produce.
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| Non-tariff barriers | All barriers other than protective tariffs that nations erect to impede international trade, including import quotas, licensing requirements, unreasonable product quality standards, unnecessary red tape in customs procedures, and so on.
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| Protective tariff | A tariff designed to shield domestic producers of a good or service from the competition of foreign producers.
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| Revenue tariff | A tariff designed to produce income for the federal government.
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| Strategic trade policy | The use of trade barriers to reduce the risk inherent in product development by domestic firms, particularly that involving advanced technology.
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| Tariff | A tax imposed by a nation on an imported good.
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| Trading possibilities line | A line that shows the different combinations of two products an economy is able to obtain (consume) when it specializes in the production of one product and trades (exports) it to obtain the other product.
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| Voluntary export restrictions | Voluntary limitations by countries or firms of their exports to a particular foreign nation to avoid enactment of formal trade barriers by that nation.
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| World price | The international market price of a good or service, determined by world demand and supply.
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2002 McGraw-Hill Higher Education