vocab pt 1
a good or service that a country buys from another country
what is import
agreements between country's to allow trade without trade barriers.
what is free trade
the level of things people need to survive
what is standard of living
an increase in prices combined with a fall in the value of money
what is inflation
a good or service that a country sells to another country
what is export
government policies that restrict international trades
the value of one nations currency related to another
what is exchange rate
the exchange of goods and services for other things
what is trade
the value by which a country's imports exceed its exports
what is trade deficit
an increase in the value of a currency relative to another
what is appreciation
substances that are found in nature
what is natural resources
a country'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 qualiyty in life
what is developed nation
the difference in value between a country's imports ad exports
what is balance of trade
a country's ability to produce a good more efficently
what is comparative advantage