International Trade and Exchange Rates

These flashcards cover key concepts related to international trade and exchange rates including definitions of trade balance, advantages, tariffs, agreements, and economic implications.

Trade Deficit

A situation where a country's imports exceed its exports.

Absolute Advantage

The ability of a country to produce a good using fewer inputs than another country.

Comparative Advantage

The ability of a country to produce a good at a lower opportunity cost than another country.

Terms of Trade

The ratio at which one good can be exchanged for another.

Exchange Rate

The price of one currency in terms of another currency.

Tariff

A tax imposed on imported goods.

Trade Adjustment Assistance Act

A program designed to help individuals harmed by international trade.

General Agreement on Tariffs and Trade (GATT)

An international agreement aimed at reducing trade barriers and promoting free trade.

World Trade Organization (WTO)

An organization that regulates international trade and oversees trade agreements.

North American Free Trade Agreement (NAFTA)

An agreement between the U.S., Canada, and Mexico to create a free trade zone.