Notgrass Exploring Economics Unit 8 Questions With 100% Correct Answers.

absolute advantage - the situation in which one person or country can produce goods with a smaller input of resources than another arbitrage - a term used for taking advantage of price difference balance of trade - the difference between a country's imports and exports comparative advantage - the situation in which one producer has a smaller opportunity cost of producing a good or service compared to another producer currency exchange rate - the price of one country's currency expressed in terms of another country's currency export - goods and services that producers create within a country and then sell and send to people, companies, or governments in other countries fair trade movement - an effort to help families and small companies in less-developed countries compete in the world economy import - goods and services that producers in other countries make and then people, companies, and governments purchase and bring into a different country import tariff - a tax placed on goods that businesses import into a country NAFTA - North American Free Trade Agreement nominal exchange rate - the rate at which you can exchange one currency for anotherNTR - Normal Trade Relations protectionism - to protect domestic industries from what the government in that country sees as unfair competition from foreign industries sanction - an order forbidding citizens from trading with another country specialization - concentrating on one kind of work subsidies - government payments to industries that have to compete in a world market where prices are lower than they are in the producing country trade - purchases between countries trade deficit - more imports than exports trade surplus - more exports than imports transaction costs - import tariffs, fuel expenses, business taxes, costs of complying with regulations