International Trade

Goods and services produced in other countries and sold domestically.

• import

• export

Goods and services produced domestically and sold in other countries.

• import

• export

The characteristic of a society in which people rely on others for most of the goods and services they want.

• Economic Interdependence

• Economic Self-Sufficiency

The condition that exists when someone can produce a good or service using fewer resources than someone else.

• Absolute Advantage

• Comparative Advantage

The condition that exists when someone can produce a good or service at a lower opportunity cost than someone else.

• Absolute Advantage

• Comparative Advantage

The policy of eliminating barriers to international trade; free trade allows goods and services to move more freely across borders.

• Free Trade

• Protectionism

• Trade Embargo

The policy of erecting trade barriers to shield domestic markets from foreign competition.

• Free Trade

• Protectionism

• Trade Barriers

A tax on imported goods designed to protect domestic producers from foreign competition; a type of trade barrier.

• Protective Tariff

• Import Quota

• Trade Embargo

• VER

A limit on the quantity of a good that can be imported during a specific period of time; a type of trade barrier.

• Protective Tariff

• Import Quota

• Trade Embargo

• VER

A ban on trade with a country or group of countries, usually for political reasons; a type of trade barrier.

• Protective Tariff

• Import Quota

• Trade Embargo

• VER