VOCAB
The ability of one person or nation to produce a good at a lower opportunity cost
What is comparative advantage?
Nations are better off when they produce goods and services they have a comparative advantage
What is the law of comparative advantage
a good sent to another country for sale
What is an export?
A good brought in from another country for sale
What is an import?
A means of preventing a foreign product or service from entering a country
What is trade barriers?
A law limiting the amount of a good that can be imported
What is an import quota?
A limit a country imposes on itself on the amount of import it ships to another country
What is voluntary export restraint?
A tax on imported goods
What is a tariff?
The use of trade restrictions to protect a nation's industries
What is protectionism?
attempts to negotiate agreements and resolve trade disputes
What is The world trade organization (WTO)?
NAFTA
what is The North American Free Trade Agreement
The value of that currency in relation to your own
What is the exchange rate?
An increase in the value of a currency
What is a appreciation?
A decreese in the value of a nations curency
What is a depreciation?