Chapter 23: International Trade

To buy goods from another country.

• Domestication
• Export

• Import

• Trade

To sell goods to other countries.

• Export

• Import

• Invoicing
• Domesticating

A country's ability to produce a good more efficiently (lower opportunity cost) than other countries can.

• Tariff
• Comparative advantage
• Trade deficit
• Absolute advantage

What does NAFTA stand for?

• North American Free Trade Agreement
• North Atlantic Free Trade Association
• New American Financial Trade Accord
• National Association of Food and Trade Associations

A payment or other benefit given by the government to help a domestic partner.

• foreign benefit

• domestic benefit

• payment

• subsidy

What does EU stand for?

• European Union
• Educational Union
• Eastern Union
• Economic Union

What does the WTO stand for?

• World Trade Organization
• World Technology Organization
• Western Trade Organization
• World Travel Organization

The difference between the value of a nation's imports and exports.

• Balance of payments
• Trade surplus
• Balance of trade

• Trade deficit

The value of a nation's currency in relation to another nation's currency.

• Inflation rate
• Interest rate
• Stock rate
• Exchange rate

Select all of the ways a trade deficit can hurt a nation.

• Value of currency will go down

• Value of currency will go up

• Demand for domestic goods will speed up

• Demand for domestic goods will slow down

• Have to go off the gold standard