| Term | Definition |
|---|
| export | good or service sold to a buyer in another country |
| import | good or service purchased from a seller in another country |
| specialization | concentration on productive efforts |
| absolute advantage | ability to produce a good at a lower cost than another |
| comparative advantage | ability to produce at a lower opportunity cost than another |
| tariff | tax on imports |
| quota | restriction of goods entering the country |
| export subsidy | payment by a country to its exporters |
| free-trade association | agreement among countries to remove barriers for trade |
| exchange rate | value of a nation's currency to another's |
| balance of payments | records of exchanges between resident and another nations |
| balance of trade | value of goods and services brought and sold in world market |
| current account | nation's balance of payments |
| capital account | an account in a nation's balance of payments |
Combine with other sets
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