International Economics
Trade Deficit
A condition in international trade when the value of the imports into a nation is greater than the value of its exports.
Currency
The paper money and coins that make up the money supply of a nation.
Exchange Rate
The value of one currency expressed in terms of another.
Imports
These are goods that are brought into one country from another.
European Union
This is a political and economic group that was formed in 1992 to encourage cooperation between the 27 member states.
ASEAN
This is a political and economic organization of 10 countries in Southeast Asia to improve economic growth.
Trade Barrier
This is a restriction to regulate international commerce and business.
Unfavorable Balance Of Trade
This is a situation that exists when a country imports more than it exports.
Tariff
This is a tax on imported goods and is usually designed to protect domestic production of similar goods.
Protective Tariff
This is a tax on imported goods designed to prevent domestic companies from having to compete with foreign goods of lower price or superior quality.
Commodity Money
This is a type of money whose value comes from the item form which it is made, often precious metals such as silver or gold.
Quota
This is a type of protectionist trade restriction that sets a physical limit on the quantity of a good that can be imported into a country in a given period of time.
NAFTA
This is an agreement signed in 1993 to reduce tariffs between the United States, Canada, and Mexico.
Export
This is any good transported from one country to another.
Subsidy
This is financial assistance from the government to encourage the production of or the purchase of a good.
Trade
This is general name for the voluntary exchange of goods and or services.
Absolute Advantage
This is the ability of a nation or region to produce more of a certain product than another country or region.
Comparative Advantage
This is the ability of one country or region to specialize in producing a good that another country can produce for the purposes of trade.
Foreign Exchange Rate
This is the amount of currency that can be traded for another country's currency at any given time.
Purchasing Power
This is the amount that money can buy.
Balance Of Trade
This is the difference in the monetary value of exports and imports for a country.
Money
This is the legally accepted payment for goods and services.
Sanction
This is the name for a category of trade barriers that a country may impose on another country or countries.
Free Trade
This is the practice of goods being traded between countries without any (or with reduced) tariffs that might slow down trade.
Embargo
This is the process of prohibiting commerce and trade with another country. This is often done to affect the country to change an internal policy.
Balance Of Payments
This measures the flow of payments between one country and all other countries.
Trade Surplus
This occurs when a country exports more than it imports.
Fixed Exchange Rate
This occurs when the value of a currency is matched to another currency or other value, such as gold.