An UNFAVORABLE balance of trade. Occurs when the value of a country's exports is less than its imports.
This pricing tactic is sometimes used to reduce surplus products in foreign markets or to gain a foothold in a new market.
Embargo. A complete ban on the import or export of a certain product, or the stopping of all trade with a particular company.
Pros of Free Trade. -Global market contains over 7 billion potential customers for goods and services. -Profuctivity grows when countries produce goods and services in which they have a comparative advantage . -Global competition and less costly imports keep prices down, so inflation does not curtail economic growth.
Absolute Advantage. The advantage that exists when a country has a monopoly on producing a specific product or is able to produce it more efficiently than all other countries. -This term does not last forever; global competition causes absolute advantages to fade.
Free trade is the movement of goods and services among nations .....
Global trade enables a nation to produce what is is most capable of producing and buy what it needs from others in a mutually beneficial exchange relationship. Free Trade. Is the movement of goods and services among nations without political or economic barriers. Pros of Free Trade.
A favorable balance of trade; occurs when the value of a country's exports exceeds that of its imports. An unfavorable balance of trade; occurs when the value of a country's imports exceeds that of its exports.
Answer: A flavor balance of trade occurs when the value of the exports of a country when it exceeds its import.