WGU D080 - Module 3
WGU D080 - Module 3
Study online at https://quizlet.com/_gswdk2
1. mercantilism country's wealth is determined by gold and silver holdings. Trade surplus is only
way to gain (export more than import)
2. absolute v com- a: country uses fewer resources to create a good
parative advan- c: country produces good at lowest opportunity cost
tage
3. Global Strategic multinational corporations efforts to gain competitive advantage against other
Rivalry Theory global firms by setting barriers to entry
4. Hecksher-Ohlin a country will export goods that use its abundant factors and import goods that
Theory use its scarce factors.
5. specialization a country uses all resources to create one good and import the rest
6. protectionism shielding a country's domestic industries from foreign competition by taxing
imports.
7. downsides of consumers pay more
protectionism isolationism
job losses
8. tariff tax on imports
9. protective tariffs Taxes placed on imported goods to raise prices and thus protect domestic produc-
ers.
10. revenue tariffs designed to raise money for the government
11. impacts of tariffs increase cost of imported goods
minimize quality due to reduced competition in domestic market
reduce range of products to consumers
harms domestic innovation
1/2
WGU D080 - Module 3
Study online at https://quizlet.com/_gswdk2
1. mercantilism country's wealth is determined by gold and silver holdings. Trade surplus is only
way to gain (export more than import)
2. absolute v com- a: country uses fewer resources to create a good
parative advan- c: country produces good at lowest opportunity cost
tage
3. Global Strategic multinational corporations efforts to gain competitive advantage against other
Rivalry Theory global firms by setting barriers to entry
4. Hecksher-Ohlin a country will export goods that use its abundant factors and import goods that
Theory use its scarce factors.
5. specialization a country uses all resources to create one good and import the rest
6. protectionism shielding a country's domestic industries from foreign competition by taxing
imports.
7. downsides of consumers pay more
protectionism isolationism
job losses
8. tariff tax on imports
9. protective tariffs Taxes placed on imported goods to raise prices and thus protect domestic produc-
ers.
10. revenue tariffs designed to raise money for the government
11. impacts of tariffs increase cost of imported goods
minimize quality due to reduced competition in domestic market
reduce range of products to consumers
harms domestic innovation
1/2
