ability of one country to produce a good at a lower cost, allows nations to specialize
NAFTA North America Free Trade Agreement
trade barriers loosened between US, Canada, Mexico, many opponents in US
balance of trade
difference between value of a nation's exports and imports, often based on exchange rate.
economic decisions made by central gov't (gov't owns factors of production... including labor)
society as a whole owns factors of production..eaither directly OR through government control
German writer, socialist/communists, wrote the communist Manifiesto, other works in favor of command economy
combines basic elements of a pure market economy & pure comand economy, most countries have a mixed economy including the US .. combined private ownership of property/factors of production with some government regulation.
Third World Countries=nations where the average per capita income is only a fraction of that in more industrialized develped countries
system where things are done "the way they have always been done"...based on custom or habit, all people are farmers fishermen artisans etc. (NO INDUSTRY)
IMF & WB
lend $ to developing countries to help them become more developed, countries often wind up in debt, unable to pay
people & nations all over the world depend on each other for many goods & services
can be good and bad: lower prices, more selection BUT some companies out of business, nations hurt, workers lose jobs
a nation using traffits, quotas, etc, to "protect" its own industries (hoping tarriffs will cause citizens to buy domestic products)