Econ: Unit 6 (International Economics)

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comparative advantage
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Terms in this set (21)
European Union (EU)International organization comprised of Western European countries to promote free trade among members.ASEANAssociation of Southeast Asian Nations - trading bloc that promotes free tradestandarda trade barrier that is used to promote the safety of goods imported into a country (ex: no lead paint can be used on toys brought to the US)embargoA government ban on trade with other countries (ex: US with North Korea) , a type of trade barriertariffA tax on imported goods; a type of trade barrierquotaA limit placed on the quantities of a product that can be imported; a type of trade barriersubsidyA government payment that supports a business or market; a type of trade barrier that makes domestic industries more competitive with cheaper goods imported from foreign countriesexchange rateThe measure of how much one currency is worth in relation to another.appreciatewhen a currency increases in value; when a country's currency appreciates in value, its exports decline because its goods become too expensive for other countriesdepreciatewhen a currency decreases in value; when a country's currency depreciates, its exports increase because its goods become cheaper to foreign countriesbalance of paymentsthe record of a country's trade with other countries in goods, services, and assets

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