International trade and Globalization

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 condition that exists when someone can produce a good or service using fewer resources 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

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

The process by which people and economies around the world are becoming increasingly interconnected; the integration of national economies into the global economy.

• Trade Barrier

• Globalization

• Macroeconomics

• Microeconomics

The value of one currency in terms of another.

• Exchange Rate

• Term Currency

• Currency Term

An international organization based in Geneva that monitors and enforces rules governing global trade.

• World Trade Organization

• United Nations

• World Bank

• NAFTA-USMCA

An international bank that offers low-interest loans, advice, and information to developing nations; an agency of the United Nations.

• World Trade Organization

• United Nations

• World Bank

• NAFTA-USMCA