Vocab pt1
A good or service that a country buys from another country
What is import
Agreement between country’s to allow trade without trade barriers
What is free trade
The level of things people need available to them
What is standard of living
A worldwide economic downturn that lasted from 1929 until 1939
What is great depression
A good or service that a country sells to another country
What is export
Government policies that restrict international trade
What is trade barriers
The value of one nations currency compared to another
What is exchange rate
The difference in value between a country’s imports and exports
What is balance of trade
The value by which a country’s imports exceed its exports
What is trade deficit
An increase in the value of a currency relativd to others
What is appreciation
An increase in prices combined with a fall in the value
of money
What is inflation
A county’s ability to produce more of a good than another country
What is absolute advantage
The value by which a country’s exports exceed its imports
What is trade surplus
a Nation whose economy allows most of its citizens to enjoy a high quality in life
What is developed nation
A general decrease in prices
What is deflation
A country’s ability to produce a good more efficiently or at a lower opportunity cost than another country
Comparative advantage