Trade
Goods and services one country buys from another country
Imports
The interconnected economies of the nations of the world
Global Economy
The buying and selling of goods and services
Trade
What is international trade?
The exchange of goods from one country to another.
Why do countries import/export?
They import to get enough materials and products and they export to get enough money for any surplus materials they have.
Goods and services that are sent out from one country to another
Exports
The ability of a country or company to produce a particular good more efficiently an another country or company
comparative advantage
A company that does business in many countries and has facilities ad offices around the world
Multinational Corporation
Why are some countries able to produce things that others countries cannot?
Certain countries have certain resources based on their climate and geographical position.
What is a comparative advantage?
The ability of a country or company to produce a particular good more efficiently than another country or company.
Trading between countries when there are few or no restrictions
Free Trade
A tax that is put on imports to increase prices
A Tariff
Ways to limit competition from other countries
Trade Barriers
What is the biggest export coming out of the United States?
Data Processing Equipment
What are the 3 major trading alliances around the world?
North American free trade agreement (NAFTA), European Union (EU), and association of southeast Asian Nations (ASEAN).
The difference in value between a country’s imports and exports over a period of time
Balance of Trade
The price at which one currency can buy another currency
Exchange Rate
A ban on the import or export of a product
An Embargo
What is the biggest import coming into the United States?
Fuel and natural gas
What is protectionism?
The practice of government putting limits on foreign trade to protect businesses at home.
What are three examples of trade barriers?
Tariff, Quota, and Embargo
The practice of the government putting limits on foreign trade to protect businesses at home
Protectionism
A limit placed on the quantities of a product that can be imported
A Quota
Why do Countries Trade?
Trading goods and services allows countries to meet their wants and needs as well as boosting their economy.
What is a domestic trade?
Production, Purchasing, and sale of goods and services within a country.