8.1 International Trade

A country can produce a good at a lower opportunity cost to its economy.

• Absolute advantage

• Comparative advantage

• Economic efficiency

• Market equilibrium

The use of trade barriers in order to limit trade.

• Protectionism

• Globalization

• Laissez-faire

• Free Trade

Lowering or eliminating trade barriers.

• Free trade

• Protectionism

• Tariff imposition

• Trade embargo

A series of retaliatory tariffs between nations.

• Trade war

• Economic sanctions

• Import quotas

• Currency devaluation

A good that is brought into an economy for sale.

• Export

• Import

• Domestic Good

• Trade Good

Sets rules between several countries.

• Bilateral trade agreement

• Unilateral trade agreement

• Multilateral trade agreement

• Regional trade agreement

Preventing a foreign nation's products or services from entering another nation's territory.

• Trade barrier

• Trade agreement

• Import quota

• Export subsidy

Imposed a 50% tax on all goods imported into the US during the Great Depression; started a trade war and worsened the Depression.

• Smoot-Hawley Tariff

• Tariff of 1828

• McKinley Tariff

• Revenue Act of 1932

A good that is sent to another country for sale.

• Import

• Export

• Trade

• Shipment

A country produces an item using fewer resources than another country.

• Comparative advantage

• Absolute advantage

• Resource efficiency

• Production efficiency