AP®︎ Human Geography: Topic 7.6 Flashcards

The exchange of goods and services across state boundaries

Exports are goods and services sold to another country; imports are goods and services purchased from another country

A trade surplus occurs when exports exceed imports in value; a trade deficit occurs when imports exceed exports

A trade relationship in which one place's supply of a good, resource, or service corresponds to another place's effective demand

What must be given up to produce one additional unit of something

The ability to produce a good or service at a lower opportunity cost than another producer

The ability to produce more of a good than another producer using the same resources

An economic approach favoring markets, private enterprise, competition, and international trade while reducing state ownership and many government restrictions

The reduction of tariffs, quotas, and other barriers to international exchange

The removal or reduction of government rules affecting businesses and markets

The transfer of state-owned enterprises or services to private ownership

Investment in which a firm acquires or establishes productive operations in another country

The movement of goods and services across borders with few tariffs, quotas, or comparable restrictions

An agreement among states to reduce tariffs and other barriers to trade between them

A group of states that coordinates trade policy or reduces trade barriers within a geographic region

An arrangement that reduces internal trade barriers while generally allowing each member to retain its own trade policy toward nonmembers

A free trade area whose members also adopt a common external trade policy

An integrated market that facilitates movement of goods, services, labor, and capital among members

A European regional organization whose single market and institutions promote economic and political integration among member states

The global organization that administers trade agreements, hosts negotiations, monitors policies, and provides procedures for resolving trade disputes

A South American trade bloc established in 1991 to reduce internal barriers, coordinate trade policy, and develop a common regional market

An intergovernmental commodity organization whose oil-exporting members coordinate petroleum policies and may use production targets to influence supply and prices

Mexican factories that import materials or components, assemble or process products, and export the output

A tax imposed on an imported good, often used to protect domestic producers, raise revenue, or pressure another government

A tariff calculated as a percentage of an imported product's value: product value × tariff rate

A government limit on the amount of a product that may be imported

Government support that lowers costs for selected domestic producers

Government measures that prohibit or restrict trade for political or security purposes

The use of tariffs, quotas, subsidies, or other trade barriers to shelter domestic economic activity

A condition in which the economic activities and well-being of places depend on conditions and decisions elsewhere

The cross-border spread of financial instability through connected credit, investment, banking, and trade networks

A crisis originating in the United States housing and financial sectors that spread globally through connected banks, investments, credit, and trade

A crisis in which a government or other major borrower cannot meet repayment obligations without extraordinary assistance or severe adjustment

A debt crisis involving debt owed or guaranteed by a national government

The crisis revealed in 2009 in which Greece's government debt threatened the wider Eurozone and led to conditional assistance from European institutions and the IMF.

An international institution that lends to member countries facing serious balance-of-payments or currency problems and provides policy advice

A situation in which a country cannot obtain enough foreign currency to meet international obligations or maintain confidence in its currency and financial system

Market-oriented policy changes attached to some international loans to restructure an economy, such as spending cuts, privatization, deregulation, or trade liberalization

An international lending institution focused more on long-term development projects and poverty reduction than on short-term currency or balance-of-payments crises

Very small loans to individuals or small enterprises that generally lack access to conventional banks or acceptable collateral

The decline of industrial activity and employment in a place as production relocates, foreign competition increases, or technology changes

A 1994 agreement among Canada, Mexico, and the United States that reduced trade barriers and integrated North American production and trade

The trade agreement among Canada, Mexico, and the United States that replaced NAFTA in 2020