Chapter 17

5. the relationship between a nation's imports and its exports
10. the use of trade barriers to protect a nation's industries from foreign competition
11. agreement that will eliminate all tariffs and other trade barriers between Canada, Mexico, and other United states
12. a currency system that allows the exchange rate to be determined by supply and demand
13. a currency system in which governments try to keep the values of their currencies constant against one another
14. a tax on certain items purchased abroad
15. a region where a group of countries has agreed to reduce or eliminate trade barriers
18. an increase in the value of a currency
19. a tax on imported goods
20. the value of a foreign nation's currency in terms of the home nations currency
21. a limit on the amount of a good that can be imported
22. a regional trade organization made up of European nations
24. the result of a nation importing more than it imports
25. a self-imposed limitation on the number of products shipped to a particular country

1. a cycle of increasing trade restrictions
2. the ability to produce a product most efficiently given all the other products that could be produced
3. the loss of value of capital equipment that results from normal wear and tear or decreases in the value of a currency
4. a good that is brought in from another country for sale
6. the result of a nation importing more than in exports
7. when it is can produce more of a given product using a given amount of resources.
8. the banks and other financial institutions that facilitate the buying and selling of foreign currencies
9. the idea that a nation is better off when it produces goods and services for which it has a comparative advantage
16. a new industry
17. a single currency that replaces individual currencies among members of European Union
23. a good that is sent to another country for sale