People use just what they need to survive, and they inherit their position from their parents. Economic system of many native peoples.
The government owns the means of production and most of the land. The government answers the three basic economic questions.
Allow for private ownership of businesses and land. Also known as a capitalist economy.
Has characteristics of both command and market economies. Almost all modern economic systems are this kind.
It is a mixed economy; however, it is mostly a market economy. The governments controls some areas like health care.
A mixed economy that leans toward free markets. Its GDP is the second highest in the Americas.
Occurs when nations choose to exchange goods with one another. It is necessary because no nation can produce everything it wants or needs.
When a country chooses to produce what it is best at. It forces countries to participate in international trade because countries cannot produce everything they want or need.
natural trade barriers
They are barriers because they are hard to cross and make it difficult for people in different communities to trade. Examples are mountains, deserts, and rain forests.
political trade barriers
Rules passed by governemtns to regulate trade. They are often intended to help a country's own producers be more competitive in the market place. Examples are tariffs, quotas, and embargos.
Taxes on imported goods. They raise prices on foreign imported goods, making locally made goods cheaper; therefore, they help local businesses.
North American Free Trade Agreement (NAFTA)
An agreement between the United States, Canada, and Mexico to remove all tariffs to increase trade between the three countries.
Something that is assigned value. It can be used to buy goods and services in a market. It is usually called money.