Trade Policies
The ability of a country to produce a product at a lower cost than other nations
What is Absolute Advantage?
The difference between the value of exports and imports
What is the Balance of Trade?
A free trade agreement between the U.S., Canada, and Mexico
What is NAFTA?
Goods sold to buyers in other countries
What are Exports?
A system where currency values change based on demand
What are Floating Exchange Rates?
Government rules that prioritize domestic manufacturers over foreign ones
What are Buy-National Regulations?
When a country imports more than it exports
What is a Trade Deficit?
An agreement among 28 European nations for easier trade and movement
What is the European Union?
Ownership of a foreign company or facility
What is Direct Foreign Investment?
Lowering a currency's value relative to others
What is Devaluation?
An economic policy with no restrictions on international trade
What is Free Trade?
When a country exports more than it imports
What is a Trade Surplus?
A trade bloc that includes Argentina, Brazil, Paraguay, and Uruguay
What is Mercosur?
An agreement between companies from different countries to form a new entity
What is a Joint Venture?
An organization that promotes trade and gives short-term loans to nations
What is the International Monetary Fund (IMF)?
A total ban on imports or exports of a product
What is an Embargo?
A summary of a country's international financial transactions
What is the Balance of Payments?
This 1994 agreement lowered global trade barriers
What is the Uruguay Round?
Allowing another firm to use your trademark or technology for a royalty
What is Licensing?
An international bank offering loans to developing countries
What is the World Bank?
This policy protects home industries through tariffs and quotas
What is Protectionism?
Selling a product below cost in a foreign market
What is Dumping?
An informal group of the 20 leading economies
What is the G20?
Sending jobs or production to another country
What is Outsourcing?
Laws requiring companies to sell foreign currency to a central agency
What are Exchange Controls?