When A Country Is The Most Efficient Producer Of An Item?

When a country imports more than it exports it has a N group of answer choices?

The opposite of a trade surplus is a trade deficit.

A trade deficit occurs when a country imports more than it exports.

A trade deficit typically also has the opposite effect on currency exchange rates.

When imports exceed exports, a country’s currency demand in terms of international trade is lower..

When a country has a comparative advantage in the production of a good?

In economic terms, a country has a comparative advantage when it can produce at a lower opportunity cost than that of trade partners. While a country cannot have a comparative advantage in all goods and services, it can have an absolute advantage in producing all goods.

Which countries were merged by Nafta?

The North American Free Trade Agreement (NAFTA) was implemented in order to promote trade between the U.S., Canada, and Mexico. The agreement, which eliminated most tariffs on trade between the three countries, went into effect on January 1, 1994.

Why would a company choose to work through intermediaries when selling products in a foreign country?

A company may work through an intermediary for a number of reasons when selling or working in a foreign country, one of which is that the intermediary will most likely be of the same ethnic or national origin of the country. … A good example of this is between the United States and some foreign countries of the world.

When a country specializes in products that it can supply more efficiently or at a lower cost than it can produce other items?

advantage is when a country specializes in products that it can supply more efficiently or at a lower cost than it can produce other items.

When a country has a comparative advantage in the production of a good quizlet?

Terms in this set (18) Countries have a comparative advantage in production when they can produce a good or service at a lower opportunity cost than other producers. Countries are better off if they specialize in producing the goods for which they have a comparative advantage.

What determines which goods a country should produce and export?

What determines which goods a country should produce and export? goods for which its residents have a high demand—exceeding its domestic capacity to produce the good efficiently. … The large scale can lead to lower average costs and create a comparative advantage in that good.

What country has an absolute advantage?

For example, the Canadian economy, which is rich in low cost land, has an absolute advantage in agricultural production relative to some other countries. China and other Asian economies export low-cost manufactured goods, which take advantage of their much lower unit labor costs.

Which of the following is formally called the International Bank for Reconstruction and Development?

The International Bank for Reconstruction and Development (IBRD) is an international financial institution, established in 1944 and headquartered in Washington, D.C., United States, that is the lending arm of World Bank Group. The IBRD offers loans to middle-income developing countries.

Is it better for a country to export more or to import more?

Key Takeaways. A country’s importing and exporting activity can influence its GDP, its exchange rate, and its level of inflation and interest rates. … A weaker domestic currency stimulates exports and makes imports more expensive; conversely, a strong domestic currency hampers exports and makes imports cheaper.

When a nation imports more than it exports it has a positive balance of trade?

If a country exports a greater value than it imports, it has a trade surplus or positive trade balance, and conversely, if a country imports a greater value than it exports, it has a trade deficit or negative trade balance. As of 2016, about 60 out of 200 countries have a trade surplus.

What is bot in economics?

Balance of trade (BOT) is the difference between the value of a country’s imports and exports for a given period and is the largest component of a country’s balance of payments (BOP).

What is it called when you stop trading with a country?

A trade embargo refers to banning exports or imports to or from one or more countries. These can then be narrowed down more specifically. For example, a strategic embargo prevents the exchange of military goods with a country, while an oil embargo prohibits only the trade of oil.

Why do companies decide to enter a foreign market?

Top reasons to enter International Markets. International markets provide various key advantages to the average corporation. By moving internationally, corporations have the ability to increase demand for their products, decrease the economic volatility from their home market, and develop new customers.

What is it called when an American company sells its goods to foreign markets?

What is it called when an a American company sells its goods to foreign markets? … Importing involves the purchase of goods and services from foreign sources while exporting involves.

What concept is most important in determining which good a person or nation will specialize in the production of?

How can you tell which good a person or country will specialize in? (4 points)Opportunity cost is the concept in whose basis a person or a nation decides in which product it will specialize in.

How does international trade help the economy?

Trade is central to ending global poverty. Countries that are open to international trade tend to grow faster, innovate, improve productivity and provide higher income and more opportunities to their people. Open trade also benefits lower-income households by offering consumers more affordable goods and services.

Which countries have trade surplus?

Top 18 economies with the largest surplusRankEconomyCAB (million US dollars)1Germany296,6002Japan195,4003China164,9004Netherlands80,88014 more rows

Is a group of firms or nations that agree to act as a monopoly and not compete with each other in order to generate a competitive advantage in world markets?

Political concerns may lead a group of nations to form a cartel, a group of firms or nations that agrees to act as a monopoly and not compete with each other, to generate a competitive advantage in world markets.

Why do countries specialize in producing certain goods?

Adam Smith said that countries should specialize in the goods and services in which they have an absolute advantage. When countries specialize and trade, they can move beyond their production possibilities frontiers, and are thus able to consume more goods as a result.

Why is trade good for the economy?

Trade is critical to America’s prosperity – fueling economic growth, supporting good jobs at home, raising living standards and helping Americans provide for their families with affordable goods and services. … The United States is the largest services trading country in the world.