10. Micro -- International Trade -- Dunbar

Absolute Advantage

This type of "advantage" occurs when one country's workers are more productive at producing a good than another country's workers.

Comparative Advantage

This type of "advantage" occurs when a country's producers have a lower opportunity cost of production of a good than another country.

Protectionism

This umbrella term refers to policies that strive to protect a nation's production/employment from global competition. The economic tools to achieve this include tariffs, quotas, VRAs, embargoes, etc.

Dumping

The sale of goods in export markets at prices below domestic prices (and sometimes below the actual cost of producing the goods/services).

Infant Industries

Newly-begun industries that are just starting to produce in a given economy. Often these industries call for government protection against international competition while they are still young to allow them to grow before facing the broader market.

"Fair Trade"

A movement calling for producers and workers in developing nations to be, among other things, paid a just wage for their labor.

Trade Embargo

A full prohibition against trading particular goods.

Tariff

A tax (duty) imposed on imported goods.

Quota

A limit on the quantity of a good that may be imported in a given time period.

Voluntary Restraint Agreement (VRA)

An agreement to reduce the volume of trade in a specific good - a "voluntary" quota.

World Trade Organization (WTO)

This international organization was created during the "Uruguay Round" of the GATT to enforce free-trade rules among nations. This organization is the world's trade police force.

North American Free-Trade Agreement (NAFTA)

This trade pact was originally signed 1993 by the United States, Mexico and Canada as a formal agreement to lower the barriers to trade among the three economies.

Dominican-Republic Central-America Free Trade Agreement (DR-CAFTA)

A regional trade agreement between several nations in Central America.

European Union (EU)

Initially a six-country trade area established by the 1957 Treaty of Rome and known as the European Economic Community, it has become an increasingly political union. In 1999 a single currency, the Euro, was launched in 11 of the then 15 member countries. Viewed as a single entity, the EU has a bigger economy than the United States. In 2002, a further 10 countries were invited to join the EU in 2004, increasing its membership to 25 countries, with more countries joining in recent years.

Mercosur

A regional trade agreement between several nations in South America.

ASEAN (Association of Southeast Asian Nations)

A regional trade bloc of several nations in Southeast Asia.