| A | B |
|---|
| opportunity costs | giving up second best choice |
| balance of trade | measure of the difference in value between a nation's exports and imports |
| trade surplus | overage occuring when total value of a nation's exports is higher than the total value of its imports |
| trade deficit | shortfall when the total value of a nation's imports is higher than the total value of its exports |
| balance of payments | measure of the total flow of money into or out of a country |
| balance of payments surplus | overage when more money flows into a nation than out of the nation |
| balance of payments deficit | shortfall that occurs when more money flows out of a nation than into the nation |
| exchange rates | measurement of one nation's currency relative to another country |
| countertrade | Involves the barter of products for products rather than for currency |
| importing | buying products produced/grown in foreigh nations |
| exporting | Selling products produced or grown domestically |
| tariffs | taxes on imports |
| quotas | limitations on the total that can be imported during a specified time |
| embargo | ban on international trade |
| free trade | no restrictions upon international trade |
| General Agreement on Tariffs and Trade (GATT) | treaty encouraging international trade among members |
| World Trade Organization (WTO) | promotes international trade and settles disputes |
| World Bank | 187 countries working to reduce poverty |
| trading bloc | group of countries allows free flow of goods amont member nations |
| National American Free Trade Agreement (NAFTA) | eliminates barriers between US, Canada, and Mexico |
| European Unions (EU) | world's largest common market |
| joint ventures | two or more companies join forces |
| partnership | voluntary agreement where two or more people act as co-owners of a business for profit |
