Economic Vocabulary

5. interdependence The economic conditions and policies in one nation increasingly affect economic conditions and policies in other nations. A reliance by each country on other countries for goods and services through trade.
8. Foreign goods and services that are purchased from sellers in other nations.
10. A policy forbidding trade in a certain good (e.g. ivory) or with a certain country.
11. union A regional trade organization formed to promote trade among countries in Europe by reducing trade barriers and adopting a common currency, the euro.
13. An individual, business, or country focuses its resources on producing one or only few goods or services.
15. A tax on imports, increasing the price of imports for domestic buyers

1. dollar People holding dollars get more of the other country's currency for each of their bills
2. advantage An individual, business, or country that can produce a certain good with fewer resources than other countries
3. dollar People holding dollars get less of the other country's currency for each of their dollars
4. A limit on quantity of a good allowed into a country
6. advantage An individual, business, or country that can produce a certain good with fewer resources than other countries
7. Administers trade agreements, handles disputes, and provides a venue for negotiating among its member nations
9. rate The price of one nations currency relative to another nations currency
11. Domestic goods and services that are sold to buyers in other nations.
12. Established a free-trade zone (Canada, Mexico, and the United States)
14. surplus Occurs when one country sells more goods to other countries than it buys