| A | B |
|---|
| international trade | countries buying and selling each other's goods |
| Exporting | individuals, government, or businesses selling to other countries |
| Importing | Business, government, or individual buying from other countries |
| Raw Materials | Countries often can produce goods cheaper because of access to these |
| Absolute advantage | One country produces cheaper and faster than another |
| Comparative advantage | Can produce relatively more efficiently |
| Improved standard of living | a benefit of international trade |
| Balance of payments | $ coming in and going out of a country |
| Balance of trade | Difference between imports and exports |
| Trade surplus | Exports>imports |
| Trade Deficit | Imports>exports |
| Fewer Jobs | What a large trade deficit leads to in employment |
| Competition | Levels of inflation and unemployment affect this rivalry for customer dollars in the world market |
| Weak currency | This tends to lead to more exports and less imports |
| Cultural Differences | Important to understand this way of life for trade agreements |
| Quotas | way to control trade by limiting # |
| Tariffs | way to control trade by taxing |
| Embargoes | Way to control trade by NOT trading |
| Protectionism | Tactics used by the government to protect domestic trade and avoid deficits |
| trade center | offices and display rooms in foreign cities to help exporters |
| Reduced transportation costs | Why businesses often choose to locate in foreign countries |
| GATT | an agreement that has reduced tariffs in its 130 member countries |
| protectionism | TGovernment policy in which trade is protected |
| highly valued currency | this tends to increase imports and decrease exports |
| trade talks | these help settle disputes in countries |
| WTO | this 146 member organization deals with the rules of trade |
| NAFTA | agreement between US, Canada, and Mexcio |
| Trade mission | Groups of government and business officials who travel and promote trade |
