Trade, Trade Barriers, and the European Union

Vocabulary flashcards covering international trade concepts, trade barriers (tariffs, quotas, embargos), currency systems, and the European Union.

Bartering

The exchange of goods or services for other goods or services without using money.

Voluntary Trade

Trade where countries or individuals freely choose to give or take goods and services.

Specialization

When a country focuses on producing a few products or services that it makes best, trading for what it cannot produce.

Trade Barrier

Any activity, policy, or obstacle that limits, restricts, or stops the free exchange of goods and services between nations.

Tariff

A tax placed on imported goods coming into a country, designed to ensure domestic goods remain cheaper than foreign imports.

Quota

A specific numerical limit placed on the quantity of a product that can be imported to restrict competition from cheaper foreign goods.

Embargo

A total government ban on trade with a specific country, typically enacted to punish that country for political reasons.

Import

A good or service brought into a country from an external source.

Export

A good or service produced within a country that leaves to be sold internationally.

Currency

A system of money used within a particular country or economic zone.

Currency Exchange

The act of changing one country's money into another country's money.

Exchange Rate

The value of a nation's currency in terms of the currency of another nation.

European Union (EU)

A coalition of European countries that established a Single Market without internal trade barriers and shares policies and a common currency.

Euro (€)

The official common currency used by member countries of the eurozone for trade and financial transactions.

goods

Products that are produced and sold for consumption or trade. Goods can be tangible items such as food, clothing, and electronics.

service

service

Activities provided by people that cannot be touched, owned or returned.