Absolute advantage

Standards

Requirements that a good must meet before it can enter the country as an import

European Union (EU)

The European Union is a politico-economic union of 28 member states that are located primarily in Europe. It has an area of 4,324,782 km², and an estimated population of over 510 million.

Absolute advantage

The ability to produce the same amount of units of a good or service as some other producer using quantity of resources (output).

Comparative Advantage

Where one country can produce goods at a lower opportunity cost than another product. It sacrifices less resource in production

Specialization

a method of production where a business, area or economy focuses on the production of a limited scope of products or services to gain greater degrees of productive efficiency within an overall system

NAFTA

a three-country accord negotiated by the governments of Canada, Mexico, and the United States that entered into force in January 1994.

Imports

bring (goods or services) into a country from abroad for sale

Free trade

international trade left to its natural course without tariffs, quotas, or other restrictions.

OPEC

is a permanent, intergovernmental Organization, created at the Baghdad Conference on September 10-14, 1960, by Iran, Iraq, Kuwait, Saudi Arabia and Venezuela.

World Trade Organization

is an intergovernmental organization which regulates international trade

Association of SouthEast Asian Nations (ASEAN)

is an organization of countries in southeast Asia set up to promote cultural, economic and political development in the region.

Voluntary exchange

the act of buyers and sellers freely and willingly engaging in market transactions.

Trade deficit

the amount by which the cost of a country's imports exceeds the value of its exports.

Embargo

A complete ban on trade with a particular country due to political disputes

Quota

A limit on the amount of goods that can be imported

Trade barrier

A means of preventing a foreign product or service from freely entering a nations territory

Law of Comparative advantage

A nation is better off when it produces goods and services for which it had a comparative advantage

Tariff

A tax imposed on imported goods

Subsidy

A transfer payment given by a government to their exporting companies allowing the company to compete with others