Chapter 4 Review

An ongoing agreement to move the United States, Mexico, and Canada closer to true free trade

Occurs when a firm subcontracts part or all of its goods to an outside firm as an alternative to owning and operating its own production facility

The movement toward a more interconnected and interdependent world economy

Produce goods and services relatively more efficiently compared to other countries

Specialization and trade between countries benefit all who are involved

Company’s ability to gain access to and use resources to give them an edge over their competition

Buying products from other countries

Total restriction on an import or an export

A tax imposed on an imported good or service

Rates at which countries are converted into another currency