Part 1 – Section B.1. Global trade

[Hameed]

CMA1.B1.a. define terms commonly associated with global trade, including net exports and net imports

CMA1.B1.b. define and demonstrate an understanding of the terms of trade (or exchange ratio)

CMA1.B1.c. interpret the production possibilities curves and determine the cost ratio for the two products on the graph

CMA1.B1.d. determine the gains from trade and the resulting trading possibilities curve

CMA1.B1.e. define and demonstrate an understanding of the principle of comparative advantage

CMA1.B1.f. identify the advantages and disadvantages of free trade from the point of view of

CMA1.B1.g country and the point of view of an individual firm

CMA1.B1.h. define protectionism and identify the barriers to free trade

CMA1.B1.i. define and analyze the effects of tariffs, import quotas, nontariff barriers, voluntary export restrictions, trigger pricing and antidumping rules on a country, an industry, and an individual firm

CMA1.B1.j. analyze domestic policies to promote exports, including export subsidies

CMA1.B1.k. identify the function of the Export-Import Bank

CMA1.B1.l. discuss the arguments used to support protectionism

CMA1.B1.m. identify the economic and social costs of protectionism

CMA1.B1.n. estimate the impact of protectionism on industries and firms

CMA1.B1.o. graphically analyze the supply and demand of exports and imports

CMA1.B1.p. differentiate among a customs union, a common market, and an economic union

CMA1.B1.q. identify the key international agreements on trade including the European Union, General Agreement on Tariffs and Trade (GATT), North American Free Trade Agreement (NAFTA), and the World Trade Organization (WTO)