International Trade

A means of preventing a foreign product or service from freely entering a nation's territory.

• trade surplus

• net exports

• trade barriers

The ability to produce a product most efficiently given all the other products that could be produced.

• absolute advantage

• comparative advantage

The ability to produce more of a given product using a given amount of resources.

• comparative advantage

• absolute advantage

A limit on the amount of a good that can be imported.

• import quota
• export quota

A tax on imported goods.

• import

• export

• tariff

• income tax

The lowering or elimination of protective tariffs and other trade barriers between two or more nations.

• free trade
• protectionism
• balance of trade

The measure of how much one currency is worth in relation to another.

• growth rate

• exchange rate

• tariff rate

When a country exports more than it imports.

• trade surplus
• trade deficit

An excess of imports over exports.

• trade surplus
• trade deficit

A trade agreement that eleminates barriers between the United States, Canada, and Mexico.

• WTO

• EU

• NAFTA