| A | B |
|---|
| Exports | the goods and services that a nation produces and sells to other nations |
| imports | good and services that buys from other nations |
| absolute advance | country's ability to produce more of a given product that can another country |
| comparitive advantage | country's ability tp produce a given product relatively more efficenty than another country |
| specialization | assignment of tasks so that each worker performs fewer functions more frequently |
| division of labor | division of work into a number of separate tasks to be performed by a diff.workers |
| Tariff | tax placed on an imported product |
| Quota | limit on the amount of a good that can be allowed into a country |
| protective tariff | tax on imported product designed to protect less efficient domestic producers |
| revenue tariff | tax on imported goods to raise revenue |
| dumping | sell products outside country cheaper than it cost to produce at home |
| embargo | prohibition on export or import of product |
| protectionists | person who protects domestic producers w/ tariffs, quotas, etc. |
| free trader | individual who favors fewer or no trades restrictions |
| infant industries | arguement that new and emerging industries should be protected from foreidn competition until they are strong enough to compete |
| balanced of payments | difference b/w money paid and received other nation and trade |
| balance of trade | equality of imports & exports |
| trade deficit | when payments spent on imports exceed payments received from exports |
| most favored nation clause | trade law allowing a 3rd country to enjoy the same tarrif deductions the US negotiates w/ another country |
| GATT | general agreement on eliminating tarrifs and trade |
| WTO | World Trade Organization; replaced GATT |
| NAFTA | North American Free Trade Agreement |
| EU | European Union |
