Global Trade Vocabulary

1. A tax imposed on imported goods.
3. A total ban on imports or exports of a product.
6. trade The policy of permitting the people and businesses of a country to buy and sell where they please without restrictions.
7. The practice of selling domestically produced goods to buyers in another country.
10. The difference between the value of a country’s exports and the value of its imports during a specific time.
13. The policy of protecting home industries from outside competition by establishing artificial barriers such as tariffs and quotas.
14. quota A limit on the quantity of a certain good that can be imported.
16. Tariffs that are imposed in order to make imports less attractive to buyers than domestic products are.

2. A system in which prices of currencies move up and down based upon the demand for and supply of the various currencies.
4. Laws that require a company earning foreign exchange (foreign currency) from its exports to sell the foreign exchange to a control agency, such as a central bank.
5. Goods and services produced in one country and sold to other countries.
8. An unfavorable balance of trade that occurs when a country imports more than it exports.
9. Government rules that give special privileges to domestic manufacturers and retailers.
11. The principle that each country should specialize in the products that it can produce most readily and cheaply and trade those products for those that other countries can produce more readily and cheaply.
12. Goods and services that are bought from other countries.
15. A favorable balance of trade that occurs when a country exports more than it imports.