International Trade Vocabulary

Goods or services that a country sells to other nations

• Duty
• Tariff
• Export
• Import

Goods or services that a country buys from other nations.

• Duty
• Tariff
• Export
• Import

The price of one country's currency in terms of another country's currency.

• Tariff
• Duty Tax
• Exchange Rate
• Fiscal Policy

A tax placed on imports

• Quota
• Duty Tax
• Protectionism
• Tariff

When a nation imports more than they export, that nation has a

• Free trade agreement
• Trade surplus
• Trade deficit
• Trade free economic system

What is the primary purpose NAFTA?

• To reduce trade barriers among the US, Canada, and Mexico
• To reduce trade barriers among Central America and Mexico
• To reduce trade barriers among Brazil and Mexico
• To encourage free trade between the US, Europe, and Canada

The most serious type of trade barrier.

• Quota
• Excise Tax
• Tariff
• Embargo

The US and Nigeria are having a dispute concerning regulations on cotton imports.  Which group listed below will help settle this dispute?

• WTO
• ASEAN
• GATT
• OPEC

How would inexpensive lumber from Canada affect the U.S. market for new homes?

• Prices of new homes would increase.
• Credit available for new homes would increase
• Prices of new homes would decrease
• Transaction costs for new homes would decrease.

Only producing certain goods instead of everything you need is known as

• importing
• specialization
• balance of trade
• absolute advantage