| A | B |
|---|
| domestic | within the country |
| international | bwtween countries |
| absolute advantage | occurs when country can produce product at a lower cost than others |
| comparative advantage | When a country specializes in production of product because they are more efficient |
| imports | goods and services brought into a country |
| exports | goods and services sent out of a country |
| trade relations | jkljkljl |
| foreign debt | amount of money a country owes to other countries |
| balance of trade | difference between a country's imports and exports |
| balance of payment | difference between amount of money coming into and going out of a country |
| foreign exchange market | where banks buy and sell different currencies |
| exchange rate | value of a currency in one country when compared with the value in another |
| embargo | government ban on import or export of specified goods to with specified countries |
| quota | limit on the quantity of good that may be imported or exported within a given period of time. |
| tariff | tax on certain imported products |
| common market | group of countries which organize so that they may trade freely with one another |
| free-trade agreement | agreements between countried which remove duties and trade barriers on products between them |
| free-trade zone | selected geographic region that allows duty free products to be imported and then used. |
| duty | fee assess by a country on imported goods. |
| franchising | allowing a business the right to use another company's name or process in a specified way |
| licensing | selling the right to a company to use some intangible property for a fee or royalty |
| joint venture | 2 or more companies agree to share a business project |
