| A | B |
|---|
| balance of trade | difference between a country's imports and exports |
| trade deficit | when a country's imports are greater than its exports |
| trade surplus | when a country's exports are greater than its imports |
| absolute advantage | the ability to produce an item more efficiently than another country |
| comparative advantage | the ability to produce an item at a lower opportunity cost |
| embargo | cutting off all trade with another country |
| free trade | trade without barriers |
| import quota | restriction on the number of specific good that can enter a country |
| tariff | tax on imports |
| trade barrier | something that restricts or limits trade between countries |
| voluntary trade restriction | a country's choice to limit the sale of their goods in another country |
| European Union (EU) | promotes cooperation among its members |
| globalization | bringing the world together through international trade and business |
| North American Free Trade Agreement | trade agreement between Mexico, Canada, and the United States |
| World Trade Organization | member countries working to for the benefit of trade |
