Econ Unit 5 Key Terms

When a country buys goods from another country with the intention to resell those goods.

• Export

• Tariff

• Import

• 1. Trade barrier

A region where a group of countries agrees to reduce or eliminate trade barriers.

• Economic sanction zone

• Self-sufficiency zone

• Free-trade zone

• Globalization zone

Withdrawal of customary trade and financial relations for foreign- and security-policy purposes.

• Protectionism

• Economic sanctions

• Globalization

• Comparative advantage

A tax on imported goods.

• Tariff

• Sin tax

• 1. Sales tax

• 1. Excise tax

A country using its own natural resources to produce all its goods and services, instead of trading with other countries.

• Globalization

• Comparative advantage

• International trade

• Self-sufficiency

Refers to how trade and technology have made the world into a more interconnected and interdependent place.

• Protectionism

• Globalization

• Self-sufficiency

• Comparative advantage

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

• Import

• Blockade

• Trade barrier

• Free-trade zone

The economy's ability to produce goods and services at a lower opportunity cost than that of trade partners.

• Comparative advantage

• Self-sufficiency

• Trade advantage

• Monopoly

When a country sells goods to another country.

• Export

• Tariff

• Import

• Trade barrier

The use of trade barriers to protect a nation’s industries from foreign competition

• Comparative advantage

• Protectionism

• Globalization

• Zero-trade zones