Economic Vocabulary

2. Administers trade agreements, handles disputes, and provides a venue for negotiating among its member nations
5. A policy forbidding trade in a certain good (e.g. ivory) or with a certain country.
6. union A regional trade organization formed to promote trade among countries in Europe by reducing trade barriers and adopting a common currency, the euro.
7. An individual, business, or country focuses its resources on producing one or only few goods or services.
9. rate The price of one nations currency relative to another nations currency
13. A tax on imports, increasing the price of imports for domestic buyers
14. dollar People holding dollars get more of the other country's currency for each of their bills
15. dollar People holding dollars get less of the other country's currency for each of their dollars

1. A limit on quantity of a good allowed into a country
3. advantage An individual, business, or country that can produce a certain good with fewer resources than other countries
4. advantage An individual, business, or country that can produce a certain good with fewer resources than other countries
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. Established a free-trade zone (Canada, Mexico, and the United States)
11. Domestic goods and services that are sold to buyers in other nations.
12. surplus Occurs when one country sells more goods to other countries than it buys