International Trade

Front

A good or service brought in from another country for sale.

Back

import

Front

The principle that a country benefits from specializing in the production at which it is relatively most efficient thus has the comparative advantage. This is true because of lower opportunity costs

Back

Law of Comparative Advantage

Front

When one country can produce a good more efficiently than another country. The ability to produce more of a given product using a given amount of resources

Back

Absolute Advantage

Front

Goods and services produced in one country and sold to other countries

Back

Exports

Front

Goods and services consumed in a country but which have been purchased from other countries

Back

Imports

Front

When a country's imports exceed its exports

Back

Trade Deficit

Front

When a country's exports exceeds its imports

Back

Trade Surplus

Front

Government imposed limit on the quantity of a good or service that can be sold (imported) in their country

Back

Quota

Front

A tax imposed by a government on goods and services imported from other countries that serves to increase the price and make imports less desirable, or at least less competitive, versus domestic goods and services

Back

Tariff

Front

The economy performs best with minimal government interaction in the market.

Back

Free Trade