Vocabulary
International Trade
The exchange of goods and services between countries.
Free Trade
International trade that is unrestricted by government protectionist measures.
Trade Barriers
Rules that interfere with trade.
Protectionism
A foreign policy that restricts or limits free international trade.
Quota
Quantitative restrictions on imports.
Tariffs
A tax placed on imports.
Infant Industry
A new industry with very little experience.
Strategic Industry
An industry of great economic importance to a country.
Export Subsidy
A subsidy given to a producer that helps a company that exports its products.
NAFTA
North American Free Trade Agreement is an agreement designed to promote trade by reducing barriers between Canada, the United States and Mexico.
Domestic Producers
Businesses that produce goods and services within a country's borders.
Foreign Producers
Businesses that produce goods and services outside a country's borders.
Domestic Consumers
Consumers within a country's borders.
Closed economy
A nation that has no economic relations with other countries.
Open economy
A nation that trades goods and services with other countries.
Standards or Regulations
Rules placed on imported goods in an attempt to maintain product quality and safety.
Embargo
An official ban on trade or economic activity with another country.
WTO
World Trade Organization