| A | B |
|---|
| absolute advantage | Ability to produce a product with fewer resources than other producers |
| balance of payments | Summary of all exchanges between a country's residents and those of other nations during a given time |
| balance of trade | The difference between a nation's exports and its imports of merchandise (goods) |
| comparative advantage | The ability to product a product at a lower opportunity cost than other products |
| exchange rate | The price of a particular currency in terms of another currency |
| WTO | Multinational organization promoting free trade |
| labor productivity | Helps workers earn high wages and compete in world markets |
| quotas | Restrictions on the quantity of goods that can enter a country |
| tariff | A tax on imports |
| capitalism | Economic system with privately owned, competitive businesses |
| socialism | Economic system with government or public ownership of the means of production |
| environmental standards | Seen as disguised trade barriers by developing nations |
| World Bank | Makes long-term loans to developing nations |
| Economic growth | Main problem for developing nations |
| Privatization | Sale of government-owned businesses to private individuals or companies |
