21 terms

international economics

STUDY
PLAY
absolute advantage
This is the ability of a nation or region to produce more of a certain product than another country or region.
asean
This is a political and economic organization of 10 countries in Southeast Asia to improve economic growth.
balance of payments
This measures the flow of payments between one country and all other countries.
balance of trade
This is the difference in the monetary value of exports and imports for a country.
comparative advantage
This is the ability of one country or region to specialize in producing a good that another country can produce for the purposes of trade.
embargo
This is the process of prohibiting commerce and trade with another country. This is often done to affect the country to change an internal policy.
european union
This is a political and economic group that was formed in 1992 to encourage cooperation between the 27 member states.
export
This is any good transported from one country to another.
fixed exchange rate
This occurs when the value of a currency is matched to another currency or other value, such as gold.
foreign exchange rate
This is the amount of currency that can be traded for another country's currency at any given time.
free trade
This is the practice of goods being traded between countries without any (or with reduced) tariffs that might slow down trade.
imports
These are goods that are brought into one country from another
nafta
This is an agreement signed in 1993 to reduce tariffs between the United States, Canada, and Mexico
purchasing power
This is the amount that money can buy.
subsidy
This is financial assistance from the government to encourage the production of or the purchase of a good.
tariff
This is a tax on imported goods and is usually designed to protect domestic production of similar goods.
trade
This is the voluntary exchange of goods and or services
trade barrier
This is a restriction to regulate international commerce.
trade deficit
a condition in international trade when the value of the imports into a nation is greater than the value of its exports
trade surplus
This occurs when a country exports more than it imports.
wto
This is an international organization that was formed to supervise international trade and break down barriers to trade