Chapter 6 Vocabulary

• A situation that occurs when individuals of businesses produce a narrow range of products.

• Export

• Specialization

• Import

• Comparative Advantage

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

• Comparative Advantage

• Specialization

• Export

• Import

• Goods and services produced in one country and purchased by another.

• Import

• Export

• Comparative Advantage

• Comparative Advantage

• A trading nation’s ability to produce  something at a lower cost than that of another trading nation.

• Comparative Advantage

• Specialization

• Trade barrier

• Quotas

• Any law that limits free trade between nations.

• Quotas

• Tariff

• Trade barrier

• Embargoes

• A limit on the amount of a product that can be imported

• Embargoes

• Quotas

• Trade barrier

• Trade

• A fee charged for goods brought into one country from another.

• Trade

• Embargoes

• Quotas

• Tariff

• A law that cuts off trade with a specific country.

• Quotas

• Trade barrier

• Tariff

• Embargoes

• Succession of increasing trade barriers between nations.

• Trade barrier

• Trade war

• Protectionism

• Embargoes

• The use of trade barriers between nations to protect domestic industries.

• Embargoes

• Infant industries

• Protectionism

• Trade deficit