Trade
A tax imposed on imported products.
Tariff
A stage of regional integration in which member countries agree to eliminate tariffs, and other barriers to trade.
Free Trade Area
Made up of 27 countries including Germany, France and Italy
EU
The price of 1 currency expressed in terms of another.
Exchange Rate
A government policy, regulation, or procedure that impedes trade through means other than explicit tariffs.
Nontariff Trade Barriers
A stage of regional integration in which the member countries agree to adopt common tariff and nontariff barriers on imports from non member countries.
Customs Union
Launched in 1994, consists of Canada, Mexico, and the USA.
NAFTA (North American Free Trade Agreement)
Potential harm that arises from changes in the price of one currency relative to another.
Currency Risk
A number restriction placed on imports of a specific product over a specified period.
Quota
A stage of regional integration in which trade barriers are reduced or removed; common external barriers are established; and products, services, and factors of production are allowed to move freely among member countries.
Common Market
The strongest bloc in South America.
MERCOSUR
Capital Flight
Checkpoints at the ports of entry in each country.
Customs
A stage of regional integration in which member countries enjoy all the advantages of early stages but also strive to have common fiscal and monetary policies.
Economic Union
Created in 1967 in Southeast Asia with the goal on maintaining political stability and promoting regional economic and social development among its members.
ASEAN
A nations exports exceed its imports
Trade Surplus
National economic policies designed to restrict free trade and protect domestic industries from foreign competition.
Protectionism
Perfect unification of all policies by a common organization; submersion of all separate national institutions.
Political Union
21 nations, aims for greater free trade and economic integration of the pacific rim countries.
APEC
A nations imports exceed its exports
Trade Deficit