| A | B |
|---|
| Globalization | Connections made among nations when economies freely move goods, labor, and money across borders. |
| culture | Shared beliefs, customs, practices, and social behavior of a particular group or nation. |
| international trade | Buying and selling of goods and services across national borders; also known as world trade and international business. |
| domestic business | All the business activity involved in making, buying, and selling product within a nation's borders |
| exports | Goods and services that are produced within a country's borders and sold in another country. |
| imports | Goods, services, and capital that are brought into a country from outside its borders. |
| absolute advantage | When a country can produce goods more efficiently and at a lower cost than another country. |
| comparative advantage | When a country specializes in producing a product at which it is relatively more efficient. |
| balance of trade | Difference between a nation's exports and its imports. |
| balance of payments | Total amount of money that comes into a country, minus the total amount of money that goes out for a specific period of time. |
| foreign exchange rate | Cost to convert one currency into another. |
| floating currency | Currency with an exchange rate set by the market forces of supply and demand in the foreign exchange market. |
| trade policy | Body of laws related to the exchange of goods and services for international trade. |
| trade barrier | Any government action taken to control or limit the amount of imports. |
| embargo | Government order that prohibits trade with a foreign country. |
| trade sanction | Embargo that affects only certain goods. trading bloc |
| tariff | Governmental tax on imported goods. |
| quota | Limit on the amount of a product imported into a country during a specific period of time. |
| trade agreement | Document listing the conditions and terms for importing and exporting products between countries. |
| trading bloc | Group of countries that join together to trade as if they are a single country. |
