Occurs when a country can produce a good using fewer resources than another country.

The ability of a country to produce a good at lower opportunity cost than that of another nation.

Calculated by subtracting a country's imports from its exports.

When the value of a country's exports EXCEEDS the value of the country's imports.

When the value of a country's imports EXCEEDS the value of the country's exports.

Sometimes a country chooses to reduce or limit the amount of foreign goods allowed to enter the country.

A tax on imported goods.

Limits the amount of a good that is allowed into the country.

When a government completely prohibits the import of an item, sometimes for political or military reasons.

Rules that the government sets to ensure the safety of imported goods and to make sure those goods comply with local laws.