Globalization
The act of buying and selling of goods and services across national borders.
What is International Trade?
Are goods, services, and capital that are brought into a country from outside its borders.
Imports
Another word for money
Currency
The body of laws related to the exchange of goods and services for international trade.
Trade policy
A group of countries that has joined together to trade as if they were a single country, usually a free-trade zone, as well.
Trading bloc
The shared beliefs, customs, practices, and social behavior of a particular group or nation.
What is culture?
Exists when a country can produce goods more efficiently and at a lower cost than another country. T
What is absolute advantage?
The cost of converting one currency into another
Foreign exchange rate
Used to prevent hazardous goods from entering the country. They are also used to put pressure on foreign governments for political reasons.
Trade restrictions
A document listing the conditions and terms for importing and exporting products between countries. T
What is a trade agreement?
The connection made among nations when economies freely move goods, labor, and money across borders.
What is globalization?
The difference between a nation’s exports and its imports.
Balance of trade
_____________means that its exchange rate is set by the market forces of the supply and demand in the foreign exchange market.
What is a floating currency
Any government action taken to control or limit the amount of imports. There are several types including embargos, tariffs, and quotas.
What is a trade barrier?
A group of countries that have reduced or eliminated trade barriers among themselves.
Free trade-zone
All the business activity involved in making, buying, and selling product within a nation’s borders.
Domestic business
A nation that has more exports than imports has a positive balance of trade, also known as
Trade surplus
Is a financial marketplace for buying and selling the currencies of different countries. It works like a stock market for foreign currencies.
FOREX(Foreign Exchange Market)
Embargoes that affect only certain goods. For example, ____________can prohibit the import of a specific product for public health reasons
Trade sanctions
Major trading bloc and free-trade zone in the modern global economy. It consists of 28 countries in Europe and is the largest trade sector in the world,
European Union or EU
Goods and services that are produced within a country’s borders and sold in another country.
Exports
The total amount of money that comes into a country, minus the total amount of money that goes out for a specific period of time.
balance of payments
The US Dollar is known as a ________________. It can strengthen or weaken against other currencies.
Floating currency
A governmental tax on imported goods. May also be called a duty, customs duty, or import duty.
What is a tariff?
A trade agreement between the United States, Canada, and Mexico that was established in 1994. The agreement lowered trade barriers and opened markets among the three countries. Canada and Mexico are top trading partners of the United States
NAFTA (North American Free Trade Agreement)