International Trade

A good or service brought in from another country for sale.

• import
• export 
• tariff

The principle that a country benefits from specializing in the production at which it is relatively most efficient thus has the comparative advantage.  This is true because of lower opportunity costs

• Law of Comparative Advantage

• Globalization

• Law of Incresing Costs

• Exports

When one country can produce a good more efficiently than another country.  The ability to produce more of a given product using a given amount of resources

• Globalization

• Absolute Advantage

• NAFTA

• Fair Trade

Goods and services produced in one country and sold to other countries

• Imports

• Trade Deficit

• Tariff

• Exports

Goods and services consumed in a country but which have been purchased from other countries

• Trade Surplus

• Imports

• Globalization

• Quota

When a countries imports exceeds its exports

• Trade Deficit

• Quota

• Globalization

• Imports

When a countries exports exceeds its imports

• Trade Deficit

• Trade Surplus

• Free Trade

• Currency Appreciation

Government imposed limit on the quantity of a good or service that can be sold (imported) in their country

• Quota

• Tariff

• Taxes

• Free Trade

A tax imposed by a government on goods and services imported from other countries that serves to increase the price and make imports less desirable, or at least less competitive, versus domestic goods and services

• Tariff

• Quota

• Fair Trade

• Globalization

The economy performs best with minimal government interaction in the market.

• Fair Trade

• Free Trade

• Globalization

• World Trade Organization (WTO)