| A | B |
|---|
| International trade | The exchange of goods and services among nations. |
| Imports | Goods and services purchased from other nations. |
| Exports | Goods and services sold to other nations. |
| Absolute advantage | The condition that exists when a country has unique resources and capabilities that allow it to produce a product at the lowest cost possible. |
| Comparative advantage | The value gained by a nation when it sells its products most efficiently. |
| Trade surplus | A positive balance of trade that occurs when exports exceed imports |
| Trade deficit | A negative balance of trade that occur when imports exceed exports |
| Free trade | Commercial exchange between nations with no restrictive regulations. |
| Tariff (duty) | A tax on imports |
| Quota | A limit on the number or value of products that may be imported. |
| Embargo | A ban on specific goods entering and leaving a country. |
| Protectionism | The establishment of economic policies that restrict imports in order to protect domestic industries. |
| Subsidy | Government assistance given to boost certain industries. |
| Licensing | Allowing another company (Licenses) to use a trademark, patent, formula, company name, or other intelluctual property for a fee or royalty |
