Global Economy Basics
This is the system that links countries through trade.
Global Economy
Goods made in another country and sold domestically.
Imports
The process of converting one currency into another.
Foreign Exchange
This organization helps reduce trade barriers worldwide.
World Trade Organization (WTO)
The increasing connection of economies and cultures.
Globalization
Goods made domestically and sold abroad.
Exports
A tax placed on imported goods.
Tariff
When one currency increases in value.
Appreciation
Provides low-interest loans to developing countries.
World Bank
Sharing ideas and culture across societies.
Cultural Diffusion
Trade between countries is tracked by this system.
Customs
A limit on the amount of a good that can be imported.
Import Quota
Exchange rates determined by supply and demand.
floating exchange rate
Provides financial assistance to struggling countries.
IMF
Countries with weak environmental laws attracting polluters.
Pollution Havens
When a country imports more than it exports.
Trade deficit
A complete ban on trade with a country.
Embargo
When a currency loses value.
Depreciation
The U.S. decides to tariff imported steel from China.
List one positive and one negative effect of this policy. In addition, provide the name for policies that impose trade restrictions on other countries.
Imposing one culture on another.
Cultural Imperialism
The difference between exports and imports.
balance of trade
Policies designed to restrict imports and protect industries.
protectionism
A system where a currency is tied to another currency.
fixed exchange rate
Trade agreement between the U.S., Canada, and Mexico.
NAFTA
Meeting present needs without harming future generations.
sustainable development
Competition in global markets often leads to these at home.
Lower prices
These raise prices for consumers when applied to imports.
tariffs
When the U.S. dollar is weak, who benefits most?
US Exporters
The process of increasing global economic output and improving lives.
Economic Development
Living on less than $1.25 per day.
Extreme Poverty