| A | B |
|---|
| currency | pesos, dollars, and yen |
| foreign exchange market | banks where different currencies are exchanged |
| exports | products the United States sells to Mexico, Japan, and other countries |
| imports | products the United States buys from Mexico or Japan |
| trade disputes | conflict over global competition |
| protectionism | practice of putting limits on foreign trade to protect businesses at home |
| tariff | tax placed on imports to increase their price in the domestic market |
| free trade | belief that there should be no limits on trade |
| embargo | when a government stops imports or exports of a product |
| NAFTA | trade alliance between the United States, Canada, and Mexico |
| multinational corporation | a company that does business in many countries and has facilities and offices in many countries around the world |
| specialization | countries can sell what they produce best so they can buy the products they need from other countries. |
| exchange rate | the price at which one currency can buy another currency. |
| favorable exchange rate | When the value of a country’s currency goes up compared to another country’s |
| unfavorable exchange rate | When the value of a country’s currency goes down compared to another country’s |
| Balance of trade | the difference in the value between how much a country imports and how much it exports. |
| trade surplus | When a country exports more than it imports, |
| trade deficit | When a country imports more than it exports |
| trade alliance | when several countries merge their economies into one huge market. |
