| A | B |
|---|
| Global economy | the interconnected economies of the nations of the world |
| International trade | the exchange of goods and services between nations |
| Multinational corporation | a company that does business in many countries and has facilities and officers around the world |
| Imports | goods and services that one country buys from another country |
| Exports | Goods and services that one country sells to another country |
| Balance of trade | the difference in value between a country's imports and exports over a period of time |
| Comparative advantage | the ability of a country or company to produce a particular good more efficiently than another country or company |
| Exchange rate | The price at which one currency can buy another currency |
| Protectionism | the practice of the government putting limits on foreign trade to protect businesses at home. |
| Tariff | a tax placed on imports to increase their price in the domestic market |
| Quota | a limit placed on the quantities of a product that can be imported. |
| Embargo | a ban on the import or export of a product |
| Free Trade | Occurs when there are few or no limits on trade between countries. |
| Trade | the activity of buying and selling goods and services in domestic or international markets |
