Across
- 5. union = Group of countries that reduce trade barriers and use uniform tariffs for nonmembers
- 6. = Government order prohibiting trade with another country
- 8. exchange = Foreign currencies used in international trade
- 10. tariff = Tax on imports meant to protect domestic producers
- 14. of payments = Difference between money paid to and money received from other nations in trade; includes goods and services, while merchandise trade balance counts only goods
- 15. industries argument = Idea that new industries should be protected until they become competitive
- 17. exchange rate = System where currency value is determined by supply and demand (used since 1971)
- 19. = Hiring outside companies to perform tasks to reduce costs
- 21. surplus = When a country exports more than it imports
- 22. cost = Value of the next best alternative given up when making a choice
- 23. deficit = When a country imports more than it exports
Down
- 1. = Goods and services bought from other nations
- 2. advantage = A country’s ability to produce a product more efficiently than another at a lower opportunity cost
- 3. = Taxes placed on imported goods
- 4. = Companies that operate and produce in multiple countries
- 7. favored nations clause = Trade rule allowing a country to receive the same tariff reductions given to another
- 9. countries = Nonindustrial nations with low GNP, high poverty, and economic instability
- 11. = People who support trade barriers to protect domestic industries
- 12. tariff = Tax on imports to generate government income
- 13. exchange rate = System where currency values are fixed relative to one another (used until 1971)
- 16. = Limits on how much of a good can be imported
- 18. = Goods and services produced in one nation and sold to another
- 20. traders = People who support little or no trade restrictions