Chapter 17

3. the result of a nation importing more than it imports
6. a regional trade organization made up of European nations
8. the loss of value of capital equipment that results from normal wear and tear or decreases in the value of a currency
10. a new industry
12. a single currency that replaces individual currencies among members of European Union
14. a currency system that allows the exchange rate to be determined by supply and demand
18. the relationship between a nation's imports and its exports
20. a tax on certain items purchased abroad
21. a tax on imported goods
22. the ability to produce a product most efficiently given all the other products that could be produced
23. a cycle of increasing trade restrictions
24. agreement that will eliminate all tariffs and other trade barriers between Canada, Mexico, and other United states
25. a region where a group of countries has agreed to reduce or eliminate trade barriers

1. a good that is brought in from another country for sale
2. the idea that a nation is better off when it produces goods and services for which it has a comparative advantage
4. a self-imposed limitation on the number of products shipped to a particular country
5. the result of a nation importing more than in exports
7. the use of trade barriers to protect a nation's industries from foreign competition
9. a limit on the amount of a good that can be imported
11. the banks and other financial institutions that facilitate the buying and selling of foreign currencies
13. a currency system in which governments try to keep the values of their currencies constant against one another
15. the value of a foreign nation's currency in terms of the home nations currency
16. a good that is sent to another country for sale
17. an increase in the value of a currency
19. when it is can produce more of a given product using a given amount of resources.