Economic and Trade Terms

Maquiladora

• A type of Mexican restaurant serving traditional cuisine.

• A factory in Mexico run by a foreign company and exporting its products to the country of that company.

• A tourist destination known for its beaches in Mexico.

• A government program to support local businesses in Mexico.

Black Market

• A legal trade in surplus goods.

• An illegal traffic or trade in officially controlled or scarce commodities.

• A marketplace for rare collectibles.

• A government-regulated trading platform.

Free Trade

• International trade left to its natural course without tariffs, quotas, or other restrictions.

• A system where countries impose high tariffs on imports to protect local industries.

• A trade agreement that restricts the flow of goods between nations.

• A policy that encourages government intervention in international markets.

Exchange Rate

• The value of one currency for the purpose of conversion to another.

• The rate at which one currency can be exchanged for goods and services.

• The difference in value between two currencies over time.

• The fixed rate set by the government for currency exchange.

Migrant Worker

• A person who moves from one region or country to another in order to find work.

• A person who works in agriculture only.

• A person who is unemployed and seeking work.

• A person who travels for leisure purposes.

Privatize

• Transfer from public to private ownership and control.

• Increase government control over resources.

• Enhance public services through government funding.

• Limit private sector involvement in the economy.

Quota

• A limited quantity of a particular product that under official controls can be produced, exported, or imported.

• An unlimited amount of goods that can be traded freely.

• A tax imposed on imported goods to protect domestic industries.

• A type of financial aid provided to businesses for expansion.

Natural Resources

• Materials or substances occurring in nature which can be exploited for economic gain.

• Artificially created materials for industrial use.

• Products manufactured from natural resources.

• Waste materials that can be recycled.

Nationalize

• Transfer from private to state ownership or control.

• Increase private ownership of resources.

• Enhance corporate profits through deregulation.

• Promote international trade agreements.

Gross Domestic Product (GDP)

• The total value of goods produced and services provided in a country during one year.

• The total amount of money a government spends on public services annually.

• The total value of exports minus the total value of imports in a country.

• The total number of people employed in a country during a year.