Trade Vocab and Free Trade/Protectionism

Any activity which slows or outright blocks the free exchange of goods and services between nations.

• Voluntary Trade
• Specialization
• Currency Exchange
• Trade Barrier

Example: The U.S. president increased the amount of imported peanuts allowed into the country by 100 million pounds per year.

• Quota
• Tariff
• Embargo

Makes imported goods more expensive

• Quota

• Tariff

• Embargo

NAFTA caused trade barriers to be reduced resulting in-

• surge in immigration
• decline in factory production
• decrease in price of goods
• rise in taxes on products

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

One argument against NAFTA

• Lower prices of goods

• Outsources jobs to outside countries

• Increase competition

• Economic growth

limit the flow of goods, services, and productive resources between countries.

• trade surplus

• trade barriers

• balance of trade

refers to the unrestricted flow of goods, services, and productive resources between countries

• free trade

• balance of trade

• trade surplus

• trade deficit

The use of trade barriers to protect a nation’s industries from foreign competition

• Balance of trade
• NAFTA
• Quotas
• Protectionism 

Why was OPEC created?

• To regulate the supply and price of oil
• to help the Palestinians in their problems with Israel
• to design new machinery to get oil out of the ground
• to keep countries that are not members from producing any oil